Income tax savings

Dear Experts,

                       I am a self employed businessman involved in retail sale of automobile accessories.I have annual turnover of approx  rs 1.4crores since past three financial years

1) i currently pay lifeinsurance policies premium rs 6lacs annually     

2)ppf investment 1.5lacs

3) daughter sukanya samriddhi investment rs 1.5 lacs 

4)i have a car loan for maruti brezza suv car taken in august 2019 principal outstanding  rs 11lacs

My query is do self employed businessman get benefits for taking a car loan and the interest component and depreciation benefits can be availed in the above case or its simply a waste to pay interest on the car loan.Reason being,i am getting a good deal in a high end car worth rs 45 lacs whose emi outgo will be approx  Rs 66,000,so is it worth buying.or will the interest outgo and depreciation benefits wont be of any use in my case.

 

 

 

 

 

Replies (4)
Quick Summary
A self-employed businessman with a substantial turnover is inquiring about potential income tax savings related to a car loan. They want to know if the interest paid on a car loan and depreciation benefits can be claimed as business expenses, especially when considering purchasing a more expensive vehicle. The advice received suggests that these benefits are only applicable if the car is used for business purposes, not personal use.

If you are using it for personal purposes you cant avail benefits
If you are using it for business purpose then depreciation and interest on car loan can be claimed as expense. If car is being used for personal purpose then expenses on such car would be disallowed.
You can easily claim interest and depreciation on car loan.

Thank you for your replies,is there any limit on the amounts at which the depreciation and interest can be availed,or will i get full interest and depreciation benefits

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