Used in business, tax rebate on car loan, know how to claim

car loan

Business Desk, Web4Study, Delhi, Updated Mon, 06 Jul 2020 05:42 AM IST

Since the car is considered a luxury product, it generally does not get tax rebate on its loan. But if you are a professional or use your car for business, then you can claim the return under the Income Tax Act. How to claim for tax exemption Pramod Tiwari Report of

ClearTax founder and CEO Archit Gupta said that if you want to claim tax exemption on a car loan, then it is necessary that it is used only in business. For example, you rent it, use it in a travel agency, or run a business yourself. Even if you are a professional, you can claim a tax rebate equal to the interest paid annually on a car loan. For this, the interest paid will have to be shown as the cost of business while filing the return.



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