24 July 2022
Subject: Income Tax treatment on commercial property vacated whole of the year and paid interest to bank on loan taken for purchasing the property. Dear Respected Sir What is the income tax treatment on commercial property vacated whole of the year and paid interest of Rs.10 lacs to bank on the loan taken for purchasing the property in the Financial Year 2021-22. Will it make any difference if we rent out the property for 15 days i.e. part of the year? Please provide your expert opinion on the same and oblige. Regards, K M Goyal
24 July 2022
If the property remained vacant during the full or part of previous year, even after your best effort to let it out, you can claim deduction as vacancy allowance under section 23(1)(c) of the income tax Act. You will not have to pay tax on any notional rent for the period for which property remained vacant. Claim full interest paid carry forward the loss.
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