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Freelancer vehicle depreciation

Tax planning 708 views 1 replies

JustJavaGuy

Others

28 Points Joined September 2013

Hi,

I am freelancer and also work in a company. I have declared my income and also paid advance tax as per the calculations. I do not have firm registered or shop act. I have a separte savings bank account for my freelancing income and other account for my regular job income.

I plan to buy a 2 wheeler and have queries around that :

1. Can I buy a 2 wheeler and claim depreciation against it ?

2. What is the depreciation rate assuming 2 wheeler is costin 1 lac rupees and I buy it in month of Feb this year ? What is the depreciation I can claim on it ?

3. I am planning to avail loan for buying the vehicle so should the payment be made from my freelancing bank account ?

Any other thing which I need to consider for this transaction.

Thanks.

Replies (1)

Guest

Q 1: Yes

Q2: on 100000, for 1/2 year @ 15% =7500/-(If you use it before March 14)

Q3: Yes, make the payments through freelancer account.

I have assumed that in addition to the salary received from the company, you receive freelance income in the nature of professional fees and you declare it in yout IT return and pay tax on it. The depreciation you can claim on the 2 wheeler is against the professional fees (not salary).