Housing loan interest exemption

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2014 respected sir,
one of my clint is a retail trader and he obtained housing loan for self occupied property .and we claim exemption for housing loan interest and principle paid as per rules.
please explain whether we have to include self occupied house (which is used purely for residential purpose.)in to balance sheet submitting trough itr-4.
thanking you

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 kept out of balance sheet

CA UMESH DULAL

CA UMESH DULAL (Expert)
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20 August 2014 kept out of balance sheet

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CA P K AGRAWAL

CA P K AGRAWAL (Expert)
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20 August 2014 Yes off course you should and get benefits

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 August 2014 it is for you to decide.

Including it in P&L makes recording of all the incomes easier and complete.

CA UMESH DULAL

CA UMESH DULAL (Expert)
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21 August 2014 Dear Nikhil Ji

This is a SOP so you neither get the benefit of revenue expenditure nor you get benefit of depreciation.(other than interest on H/L u/s 24 and Principle u/s 80C).

You can show it in BS but it makes your balance sheet complex and heavy. If you separate personal investments such as shares/mutual fund/house/jewelry from business , you can manage it properly and your taxation will be simple.
My suggestion- keep out of BS