Commercial building rent

This query is : Resolved

rajesh (Querist)
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21 December 2012 Dear Sir,

we are constructed a commercial Building and its let out to corporate offices and i was paid total interest of Rs. 3.5 Lkh on loan taken for the purpose of this commercial building construction.

Now my query is
1.) Rent Received on Commercial Building is House property Income or Other Sources?
2.) Total Interest of Rs. 3.5 Lkh is allowable or Only 1.5Lkh is allowable U/s. 24(b)
3.) My loan was sanctioned on the name of Housing Loan

Please Tell
Thanking you

Pankaj Gupta

Pankaj Gupta (Expert)
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21 December 2012 The rent of house property is always taxable under head house property. Hence-

# rent received will be taxable under head house property.
#u/s 24, you can claim the full interest on the loan. Because it is a let out property.