Taxes are one of the things that are bound to out a frown on your face. Everyone searches for ways and means to reduce their taxable income. From donations to insurances, all avenues are explored to avoid a larger tax. In fact, loans also help in reducing your taxable income. However, there are only specific types of loans that are eligible for tax exemption. Those who have availed car loan often have the same question: is there any tax exemption on car loan? Here is what you should know:
Is there Tax Exemption on Car Loan?
Cars are considered as a luxury item which is why there is no tax exemption on car loan. So, if you have availed a car loan, then it will not help you in reducing your income tax. However, you should know that self-employed individuals who avail car loan for vehicles to use it for commercial purposes are eligible for exemption. Such car loans fall under Section 80C of the Income Tax Act of India.
Instant Car Loan at PaySense
If you have ever applied for any type of loan at a bank, then you know the never ending process is tiresome. Bank loans require a copious amount of tedious paperwork and documentation, and then at the end, the car loan interest rate is still not low enough. However, now you have a better alternative, PaySense. Apply to PaySense for car loan up to INR 2 Lakh with minimal paperwork. Furthermore, the loan amount is credited to your account instantly. Moreover, if you a self-employed individual, then you can use the car loan amount to buy a vehicle for commercial purpose. Thus, not only will you be able to avail a car loan but you will also be eligible for tax exemption. The car loan interest rate offered by PaySense are dependent on various factors such as the tenure of loan, your credit & repayment history, credit score, source of income, profession, annual net salary, etc.
Apply for Loans of upto ₹5 Lakhs easily using your phone or laptop, and pay back on low EMIs