how can we claim deduction for interest on car loan? deduction limit ? a) in case of salaried person b) in case of business person
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Quick Summary
This discussion explores the deductibility of interest paid on car loans. For salaried individuals, deductions are generally only possible for electric vehicles. Business owners can claim interest as a deduction in their Profit & Loss account when the car is treated as a business asset. The possibility of claiming Input Tax Credit (ITC) on business-use cars, even for sole proprietorships, is also confirmed.