Question ID :
44833
082701
Is it ok for a proprietor to purchase car in his name and bring it in his books giving credit to capital account. This has to be used in the profession use only
Posted by
Mahesh Kumar
on
Mar 30, 2025
Filed Under
MISC.
Its ok....you can claim depreciation / fuel/repar expenses also...But may disallow say 25% as attributable to personal use
Posted by
SIVADAS CHETTOOR on
Mar 30, 2025
Answer ID :
85760
Business Use Only: If the car is used exclusively for professional purposes, all related expenses (fuel, maintenance, insurance, etc.) can be charged to the business.
Depreciation: The car can be depreciated as per applicable tax laws to claim deductions.
Personal Use: If the car is partly used for personal purposes, only the proportion of business use should be claimed for expenses and depreciation.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Mar 31, 2025