Rent income on property (housing loan applicable)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 December 2017 Dear Sir,

One of my Friend is a business man (proprietor), he is staying with his father and he had purchased residential property for which he is taking benefit of housing loan interest (earlier as he had not let out this property but was using for resident - in week end). Now he want to start his MSME business activity on his own place, can he claim rent expenses from his business? If he show rent income in his personal IT return, what benefit will he get? - Income on house property will still continue and 1/3 rent income can be claimed as expenses in his personal it return?

Please guide us with proper IT sections under which both the benefit will be available. Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 December 2017 One cannot trade with himself. Consequently your friend can't let his own property to his proprietory concern.
Hence rest of the issues raised becomes infructuous.