Depreciation on car

609 views 3 replies

Hi,

I am a consultant for two inclusion companies one located in Delhi and Chennai and purchased a new car recently ( 6/11/09) and using exclusively for profession. Please let me know how much % can I claim under depreciation.

Please also let me know whether I can claim petrol/driver expenses, interest on car loan and my airfright charges visiting chennai twice a month for consultancy can be deducted from the consultancy fee shown as income?

I understand reasonable expenses under these heads can be claimed for deduction.

What is reasonable and if actual expenses are more than reasonable what I have to do.

 

Replies (3)

you can charged depreciation @ 15% p.a. (as per IT Act) .... bt since your car is bought and used for less than 180 days ur rate of dep on car shall be 50% of 15% i.e. 7.5% for this yr and then from next year @ 15%....

regarding expese of petrol, driver etc... u can definately claim along with interst on loan for acquiring car.....

also u can claim expense of air freight charges as ur expense....

and as per accounitng standard... u must credit ur consultancy fees gross only... as amt received... and show all these expense saperately.... in p n l account....

Megha is right

 Yup Megha is right....I guess there is no reasonable expenses..If the expense was incurred in relation to your profession you can claim it as deduction sir as sec 37 of IT act allows that

(sec 37 - Any expenditure laid out or expended wholly and exclusively for the purposes of the business or profession shall be allowed in computing the income chargeable under the head Profits and gains of business or profession.)

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