Krishna (Advocate) (88 Points)
06 November 2012Mrs "A" purchased a house property and bought housing loan for the same during the FY: 2009-2010, she is
availing benefit for interest payment, also 80C for principle repayment. During the FY: 2011-2012, she letout
the property for business purposes, my querry is 80 C benefit is available or not? because she let out the property
for business purposes.
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 06 November 2012
Hi,
In this case deduction is not allowed..
s/80C clearely states that .."purchase or construction of residential house property.."
so when property is late out it losses staus of residential property & becomes commercial property.
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 06 November 2012
80C deduction is not available. Moreover rent income is taxable.
Saket Sinha
(Student)
(129 Points)
Replied 07 November 2012
Dear Krishna,
Deduction under sec80C shall be available.
sec80C states that deduction shall be available if for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property. loan is taken.then deduction shall be available on principal amount.
As per the details provided by you your client she has let out the property therfore the income arising out from the house property taxable under the head "Income from house property". Interst deduction can claimed without any limit. and principal amount deduction can claimed under sec 80C on payment basis. Principal deduction allowed because the income from house property continue to be taxable under the head "income from house property' as she continues to be owner of house property.
ANUBHAV VISHNOI
(-)
(150 Points)
Replied 08 November 2012
Mr krishna,
Definitely deduction u/s 80 c will be available to Mrs A
As per section 80c Payments made during the previous year towards the cost of purchase/construction of new residential house property the income from which is chargeable under the head 'income from house property are eligible for deduction under section 80C.
ANUBHAV VISHNOI
(-)
(150 Points)
Replied 08 November 2012
Mr krishna,
Definitely deduction u/s 80 c will be available to Mrs A
As per section 80c Payments made during the previous year towards the cost of purchase/construction
CA Mangesh Chitale
(B. Com. A.C.A. DISA (ICAI) DIRM (ICAI))
(245 Points)
Replied 08 November 2012
Dear Krishna, so sorry for wrong suggestion. Deduction u/s 80C is available. Actually I gave answer assuming that Mrs. A is carring on business in that residential house property.
Since your doubt is very clear, Mrs. A is not carring on any business there but she simply lets out property. It may be for whatever purpose, Deduction is available u/s 80C & 24 also for interest paid.
CAclubindia
