Tax query – for Professionals

POSTED BY priyanka ON December 8, 2012 9:43 am COMMENTS (8)

Hi,

 

My husband is an orthopedic surgeon. He works with a hospital and gets paid as professional.

 

This query is with regards to expenditure related to vehicle . He uses his father’s car for travelling, however petrol, driver fees , car maintainence is paid by my husband.

How can we show this expenditure during tax calculation?

Also, which other expenes can be claimed for professional.

 

8 replies on this article “Tax query – for Professionals”

  1. Why not transfer the car on his name ? That would be a good workaround !

  2. priyanka says:

    Hi

    He uses his credit and debit card for petrol expenses and driver.

    1. Ramesh says:

      That should make it easier for him to claim those things. But do check with your CA.

  3. priyanka says:

    Thanks Ramesh, though buying a car is not feasible.I will sure check with him.

    1. Ramesh says:

      How is he paying for petrol and maintenance? Credit/debit card or cash.

  4. priyanka says:

    Hi ramesh

    thanks fro your reply. our CA did not allow these deductions last time we filed , i found it very strange.

    He said the car is in his father’s name hence , he cannot claim these expenses.

    is this the case but the car is maintained by my husband.

    1. Ramesh says:

      Different CA behave differently, as with all professionals. Some are more conservative (like yours) and some are not so. This year, ask him, what is the best way to do that. Will buying a new car help in that, so that your husband can both claim interest payments (or depreciation, as the case may be) plus all the petrol expenses and all, even though, he will be filling the petrol in the larger car.

      Discuss with him, what are the best ways to decrease the tax liability, while remaining legal.

      Saving tax as far as possible, within legal means, is your right and you should do it.

  5. Ramesh says:

    Yes, they canbe claimed against travel expenses.

    Also, you can get computer/peripherals depreciation, communication expenses (phone bills), and many more.
    I will advise you to get in touch with a decent CA or get his tax prepared by a smart tax professional to avail of these expenses. It is better not done on your own, since you will not know all the intricacies and details.

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