New car purchase-tax problem??

There is no problem in buying in lumpsum. But financing scheme is always a better option. Since your dad is a Govt employee, it is assumed that he is not having any business income. As such, EMI paid cannot be claimed as deduction. Hence, even if you go for financing scheme, it wont help much.

But to escape the eye of the Income tax dept, it is still better to go for financing scheme.  

dear

it is not a case of purchasing in lump sum or in installments or by financing. Its a case of source of income. The car you are going to purchase will cost Rs 5-6 Lacs and you have to justify the source of amout paid. If your father is having sufficient bank balance from his income on which it is assumed being a govt employee he has paid all the taxes there is no problem. Further in case of income of your mother is not taxable then there is no problem. however if income of your mother is taxable and your not paying the tax its wrong. Its always better to manage the tax the escape route always cost to you. 

So analyse your positiong regarding source of Rs. 5-6 lacs and then go for it

thank u :)