Because they are the most practical mode of transportation for everyday commuters, two-wheelers are necessary for middle-class families. Two-wheeler loans are available from all non-bank financial institutions (NBFCs), and the vehicle is registered as security or collateral.

Obtaining a Loan for a Two-Wheeled Vehicle

It’s simple to obtain a two-wheeler loan, and there are two methods to go about it. Either choose a personal loan and use the funds to buy a two-wheeler or get a straight two-wheeler loan from a finance company.

Can One Reclaim Their Taxes on a Two-Wheeler Loan?

Tax exemption is available for a 2-wheeler loan interest rate, registered exclusively for business and in the owner’s name.

What Prerequisites Must Be Fulfilled for Tax Retrieval?

The following requirements must be satisfied for a 2-wheeler loan interest rate to qualify for tax benefits that come under the Income Tax Act of 1961, Section 80C:

1. If the borrower is a professional, self-employed, or small business owner, they may claim the income tax deduction.
2. If the bike is used for business reasons, a business owner, freelancer, or self-employed person may claim the exemption for interest paid on the bike loan.
3. Transportation expenses for commercial reasons, such as fuel and maintenance costs, are also eligible for tax deductions.

How Do You Claim Income Tax Restitution?

When submitting returns, borrowers who wish to deduct interest paid on their two-wheeler loan must attach interest certificates given by the NBFC on Form ITR-4. The owners of the vehicles must also keep all invoices, receipts, and supporting paperwork so that a claim may be made for the expenses when paying taxes.

Conclusion

Whatever the case, two-wheeler loans make it relatively simple for people to buy two-wheelers, which is why they are frequently used in India to purchase motorbikes, scooters, and other sorts of two-wheelers. 

Also Read: Know How Two-Wheeler Loan EMI Calculator can help you to calculate EMI