Depreciation on Car bought in the name of handicap brother

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3 Points Joined April 2023

I want to know that if car is bought in the name of handicap brother and I am paying the car loan as a co applicant can I take benefit of interest insurance and depreciation in my ITR, pls guide

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On 23 September 2024 at 14:44 Report
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Master in Accounts & high court Advocate
9434 Points Joined December 2011

As a co-applicant paying the car loan, you can claim benefits in your Income Tax Return (ITR) under certain conditions. Here's a breakdown: 1. Interest on Car Loan: - You can claim the interest paid on the car loan as a deduction under Section 80C of the Income Tax Act, 1961. - However, the car must be used for the handicapped person's transportation, and you should obtain a certificate from the doctor or hospital mentioning the medical condition. 2. Depreciation: - As the car is registered in your handicapped brother's name, the depreciation benefit would primarily belong to him. - However, if you are the primary user and payer of the car loan, you can claim depreciation under Section 80C, but only if you have a valid reason and documentation to support your claim. 3. Insurance Premium: - If you are paying the insurance premium for the car, you can claim the premium amount as a deduction under Section 80D of the Income Tax Act, 1961. To claim these benefits, ensure you have the necessary documentation: - Car loan documents - Interest payment receipts - Depreciation calculation - Insurance premium payment receipts - Doctor's certificate or hospital certificate (for handicapped person's medical condition)

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On 23 September 2024 at 15:40
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3 Points Joined April 2023

Thank you Sir for reply....

Yes we r having all the certificate

Can I mention all these Expenses in my Firm's books of accounts...

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On 23 September 2024 at 17:01


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