income tax
aman kumar
(Querist) 11 December 2009
This query is : Resolved
if a person take home loan + car loan both at same financial year what is total rebet of income tax or single rebet is permitted ??
Vineet
(Expert) 11 December 2009
There is no deduction allowed for car loan if there is no business income or income from other source to which utilisation of car can be directly related to.
There is absolutely no relation between Home loan and car loan. Deduction for interest on home loan is allowed under the head income from house property.
If the house property is self occupied, the maximum deduction allowed for interest is Rs 1.50 Lakhs. If the same is rented, entire interest payment is allowed as deduction. In case of deemed let out property, the deduction for so much of interest is allowed which does not result into loss from house property.
As far as interest on car loan is concerned, entire interest is allowed as deduction if the car is being used as business asset or can be linked to certain income from other sources.
Raj Kumar Makkad
(Expert) 11 December 2009
Deduction of only home loan is available.
aman kumar
(Querist) 17 December 2009
why not on car loan ???
Vineet
(Expert) 17 December 2009
Dear Amanji, please see my reply. Interest on car loan is deductible if the Car is being used for Business or earning income from other source.
