16 June 2009
An assessee has rental income, capital gains and intt income. Against rent, it has taken a loan. On that it has paid bank interest during the year. My confusion is that how the intt paid will be shown or deducted from the profits. It has no business income.It will be deducted from the rent or shown as loss under the head profit form business or profession. Please clarify what to do?????
16 June 2009
The Rental Income will be calculated under the head "Income from House Property" and deduction for the Interest paid on housing will also be allowed under section 24 b under the same head. Interest income will be calculated under the head "Income from Other Sources" and no deduction will be allowed for this. Capital Gains under "Income under the head Capital Gains".
16 June 2009
Sir, the assessee has taken two loans. one is housing loan and the other is loan against lease rent for another building. Intt on Housing loan obviously is deductible under section 24b. I want to know about the intt on loan against lease rent ( rent recd on the builing given on rent for commercial purpose). The Intt on housing loan is Rs. 170000 and intt on laon against lease rent is Rs. 35200.U/s Sec 24b the amount allowed is Rs.150000. Now clear the above situation.
it is important to know whether loan against lease rent has been taken for which purpose. If the loan is taken for personal use it will be treated as drawings if the assessee is an individual or added back in the computation of total income incase of co. / firm.
17 June 2009
The assess is an individual. She has no business or profession. She has a building which she has given on rent to HFCL. Against the lease rent, she has taken a loan (loan is not for the building)i.e. rent is deposited every month in the loan account. My query is regarding the interest paid on the resp. loan account whether the intt is deductible from rent or not.
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