Income tax

This query is : Resolved

shabbar (Querist)
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09 March 2013 can an assessee who is not having income from house property or say having income from running hostel can claim interest on repayment on loan in P&l A\c and and also claim deduction u/s 80C for repaymet of Housing loan installments.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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09 March 2013 Shabbar,

Is this hostel a commercial property? or a residential property being used to let out rooms?

In any case, if you wish to claim deduction under 80C, you are establishing on your own that the said property is a residential property. In such a case, I doubt if you can claim deduction for the interest paid in the Profit and Loss Account (ie to say against income from business or profession). In such a scenario, the deduction for interest should be guided by provisions of Section 24 of the Act.