Monthly EMI

monthly emi is capital expenditure or expense
Replies (7)
Quick Summary
This discussion explores whether monthly EMI payments count as capital expenditure or an expense. The classification depends heavily on the purpose of the loan. For businesses, principal loan repayments might be capital, while interest is revenue expenditure. For personal loans like car or property, the treatment can vary, and mobile phone EMIs are generally considered expenses for individuals.

For what purpose the loan was taken?

One is bike loan, one is car loan, one is property loan

For business entity: Principal amount can be considered as capital repayment of loan amount, and interest as revenue expenditure.

For others the vehicle loans can be revenue exp., while property loan as per business entity.

Cell phone purchased EMI going on every month it is loans (liability) or expenditure

What purpose the mobile is used? 

Mobile using for personal and asking doubt for individual filing only

Mostly its expenditure, except loan account created earlier.

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