Tax query on car

For Claiming Depreciation owner is must, in your case ownership is with other person so you can not claim Depreciaition of Car in your Business. 

However you can claim Rent paid for Car used in Business.

thanks.. How to claim rent for car, shall i make rent agreement with my wife.

Is it allowed in income tax as per law . Been also - no banking transactions been reported, is it allowed if i only show rent agreement and show car rental as her income as rent recieved as cash

thanks

Dear Sir, Can i view in this way-? Depreciation can be claimed by ASSETS used in biz. An ASSET here is any resource which is used by the biz and the benefits accrue to the biz.need not necessarily be a owner.(for eg:In case of lease transactions, asset will be recognised as an ASSET in the lessee books, and claims depreciation, but lessee is not the owner.) On this basis cant i claim depreciation?

Mr Saahil, if you make arrangement of agreement regarding car rent, it effect to your wife as income and again your wife has to pay Income tax.  You just prepare agreement by nominal rent and claim service and repairs of vehicle every month it can save some tax for you.

and Ms. Sanjana , you can't claim depreciation on leased assets as the leased assets cannot recongised as your asset, owner of lease assets are some one.  You can claim only rent paid amount.