Can I claim tax exemption on my Two-Wheeler Loan?

Now you have one more reason to go for a Two Wheeler Loan – tax exemptions. If you are a small business owner or a professional or a self-employed individual, you might be able to save on your taxes from your Two Wheeler Loan. Here’s a low down on how you can do that.

Two Wheeler Loan tax exemptions

According to the Income Tax Act, if you are a self-employed individual, you can claim as deductions from your total taxable income, all the expenses you make towards growing your business. You can enjoy three tax advantages when you buy a two wheeler on a loan for business purposes.

  • Interest as business expense

    If you are a business owner or a freelancer, who uses the two wheeler for professional purpose, you can claim the interest you pay on the Two Wheeler Loan as a business expense. This expense would be tax deductible.
  • Transportation cost

    You can claim deductions on all your transportation costs (fuel and maintenance of the two wheeler) made as part of business expense.
  • Depreciation Costs

    A portion of the expense you pay on the upkeep of your asset (or the Two Wheeler) can also be claimed as a deduction.

Do remember:

To claim Two Wheeler Loan tax exemption…

  • You must use the vehicle for business purposes
  • The veto power lies with the IT assessing officer to decide the legitimacy of the Two Wheeler Loan deduction claimed.
  • The Two Wheeler must be registered under the name of the business owner.
  • You must file your returns (ITR-4) and you must include the interest certificates issued by the bank.
  • Make sure you have your receipts, invoices and other documents of the transactions in place to claim these expenses.

If you think your business needs a Two Wheeler, then HDFC Bank offers 100% finance at attractive interest rates and pocket-friendly EMIs.

Are you looking to apply for an HDFC Bank Two Wheeler Loan? Click here now to get started!

Read more on how you to choose the best Two Wheeler Loan.

* Terms & conditions apply. Two Wheeler Loan disbursal at sole discretion of HDFC Bank Ltd.