Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Cimmerial property loan

ABHI KUMAR (684 Points)

06 June 2022

purchase commercial shop property joint wife and husband thourgh loan can we tak deduction????

Reply
Follow
Share

4 Replies

CA Puja Sharma (Chartered Accountant) (4995 Points)
Replied 06 June 2022

There is no tax benefit for the purchase of commercial property u/s 80C of the principal amount.

Only the interest component paid for the loan EMI can be taken as a deduction u/s 24 without any limit. Further from FY 17-18, the maximum loss for Income from House Property if any after deduction of interest is capped at Rs 2 lakhs annually

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

CA Rashmi Gandhi (Chartered Accountant) (86318 Points)
Replied 06 June 2022

Interest component is eligible for deduction as expense out of income from commercial shops.

1 Like

ABHI KUMAR (684 Points)
Replied 06 June 2022

Which section mam

CA Rashmi Gandhi (Chartered Accountant) (86318 Points)
Replied 07 June 2022

As per Sec 57(iii) deduction allowed from other sources income is" Any other expenditure (not being capital expenditure) expended wholly and exclusively for earning such income"