Repayment of Car Loan

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Sunil Kumar Nagpal

CA Final M.Com UGC (NET)

95 Points Joined February 2009

If car loan is taken by a Salaried person how can he take the Repayment of loan while calculating his Income

And what will be the situation when the person is not salaried person and getting his income from business or profession

Replies (1)

CA Anshu Agarwal

B€ @LW@¥$ ]-[@Pp¥

1832 Points Joined March 2009

the repayment of car loan is the utilisation of the income. Neither principal amount nor interest amount shall be deducted for calculating the taxable income of an assessee.

Howere, if the car purchased is to be used for the business or profession, the interest on car loan shall be deducted for calculating the taxable income.