Rent income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2013 Dear Sir,

A person is constructed a Godown and give this godown into rent. Rent Rs. 400,000 received & Rs. 40,000 TDS deducted.

For construction purpose loans has been taken from relatives & Interest Rs. 108,000 @ 12% is given.

Can we clam this interest as expense under the head House Property.

If we show this income in Income from other sources - Rent from Building (Building cost is Rs. 18 Lacs) what will be the best option to save tax.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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11 August 2013 There is not another option to show the income under the head IFOS.
.
The Income has to be shown under the best option available and the same is IFHP.
.
You can deduct interest on capital borrowed
for the purpose of construction of the property.
.

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2013 Thank you sir,
If assessee is not repay this loan and interest every year is consistently increasing, is it any problem to claim the interest. Is any problem to take loan from relatives

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