Monthly EMI

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166 Points Posted on 20 May 2023
monthly emi is capital expenditure or expense
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On 20 May 2023 at 11:02 Report
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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.

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SEO Sai Gr. Hosp.
212535 Points Posted on 20 May 2023

For what purpose the loan was taken?

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On 20 May 2023 at 12:14
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166 Points Posted on 20 May 2023
One is bike loan, one is car loan, one is property loan
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On 20 May 2023 at 12:54
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SEO Sai Gr. Hosp.
212535 Points Posted on 20 May 2023

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.

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On 20 May 2023 at 14:29
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166 Points Posted on 21 May 2023
Cell phone purchased EMI going on every month it is loans (liability) or expenditure
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On 21 May 2023 at 17:47
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SEO Sai Gr. Hosp.
212535 Points Posted on 22 May 2023

What purpose the mobile is used? 

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On 22 May 2023 at 09:43
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166 Points Posted on 22 May 2023
Mobile using for personal and asking doubt for individual filing only
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On 22 May 2023 at 09:58
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SEO Sai Gr. Hosp.
212535 Points Posted on 22 May 2023

Mostly its expenditure, except loan account created earlier.

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On 22 May 2023 at 14:29

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