Here are some tips to save lakhs while purchasing new cars using the tax laws. Understanding the complexities of tax laws is essential for saving significant amounts of money that would otherwise be allocated to taxes. It’s important to clarify that we’re not advocating for or condoning tax evasion. Rather, our aim is to inform our readers about how they can legitimately take advantage of the tax benefits outlined in India’s tax laws. Below, we provide comprehensive information on this matter.
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How to Save Money on Cars Using Tax Laws
This post comes from Mycarhelpline. com on YouTube. The host apprises the viewers of some handy tips to utilize the existing taxation laws to save some money on new cars. Firstly, if there is any member in your family in business, you can buy the car in his/her name. By doing so, you can claim 7.5% depreciation on the on-road price for this year and 15% depreciation for the subsequent years. That is a substantial amount already. The only condition is that the vehicle must be used for business somewhere. Moreover, you can also show the car’s insurance, interest on loan, fuel bills, service costs, etc., as business expenses and claim deductions in your taxable income.
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Apart from that, you can also claim 28% GST and input tax credit if you use the vehicle for some specified cases. This includes businesses where the car is taking goods from one place to another. Another scenario is if you use the car for driving school. In this case, you can even put a regular number plate and not a commercial one. Finally, if you put the car in the tour and travel business, you can avail of the input tax credit. There is yet another interesting scenario. Irrespective of whether you are salaried or self-employed, you can claim 1% TDS while filing an ITR if the price of the car is over Rs 10 lakh. Also, you can claim the amount you spend in the case of leasing as a reduction in taxable income. For some defence personnel, the buyers can claim a 50% discount on GST on cars.
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Author’s Note
This video highlights many possible scenarios where you can save big bucks on new cars as per the tax laws. Therefore, it makes sense to investigate the situation that applies to you. Moreover, you can even consult your CA to find out more information about this. In today’s day and age, information regarding everything is available in a matter of seconds. Hence, you must invest some time in these things which could result in you saving lakhs while purchasing new cars.
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