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  1. Gopal
  2. RTO Registration & Tax
  3. Sunday, September 23 2012
Is there any benefit in Income Tax on Buying Car in Salaried or my Wife - Female Name in India. Also - Does Bank Loan gives any tax benefit. Thanks in Advance. Gopal
Gagan Modi Accepted Answer
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Hello Gopal,

Is there any benefit in Income Tax on Buying Car in Salaried or my Wife - Female Name in India

No - The benefit is applicable to self employed - if your wife is self employed - she can claim depreciation benefit to reduce tax liability

Does Bank Loan gives any tax benefit.

Answer is again No. Unlike Lease - where lease rentals are shown as expense and are taken benefit in Income Tax or Rebate on Interest paid on Home Loan for Tax Liability. Any interest paid on car loan does not have any tax benefits by that way.

If looking for more info on Car Leasing - Refer article as below :-
Car Leasing


  1. more than a month ago
  2. RTO Registration & Tax
  3. # 1
Sushant Gupta Accepted Answer
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I am self employed.
How many cars I can buy and get tax benefit.
How much benefit one gets
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 2
Admin Accepted Answer
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@ Sushant Gupta Generally, its 15% Depreciation which one can claim in books as non cash expense
However - if car purchased after 30th september then its 7.5% depreciation

In terms of number of cars - then it depends how many cars are used for business usage

For example - if the turnover is 25 Lakh in a year and you show 3 cars you have bought and claim 15% depreciation - you also need to prove that car is exclusively used for business purpose and may also need to furnish details of travel, fuel bills etc.

If assessing officer has reasonable ground to feel that usage of cars is primarily done for personal usage - he may disallow depreciation
Depreciation is allowed only if the assessee declares and proves that car is used for business operations.
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 3
Umashankar Accepted Answer
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Sir my wife is a government employee ( state ) is there any tax relaxation as compared to businessman husband ?
  1. more than a month ago
  2. RTO Registration & Tax
  3. # 4
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