07 December 2009
X owns a house property ; 1/2 of the portion is used by him for his professional purposes & the other unit is let out for residential purposes @ Rs.5000 p.m. ;
Municipal tax paid Rs.20000 Interest on borrowed capital Rs.60000
discuss tax implications? please help me out in this question
08 December 2009
The whole property will be considered as if having two properties.
Part I - Used for business and profession, hence 1/2 of the Municipal taxes will be allowed as expenditure similar treatment will be given to interest.
Part II - will be taxed under HP as an independent unit and all provision of HP will apply accordingly... (take municipal taxes and Int. at 50%) (Conservative approach)
CAclubindia
