Sivaraman A R (.) (1040 Points)
26 May 2011A land in the name of partners. Given on rent to their firm. Building construction cost is drawn by partners from firm and routed through capital a/c by way of drawings. Building loan in the name of firm. Repayment done by partners. Interest on building loan not claimed by firm. Can partners claim deduction of interest and principal payment of building loan under houseproperty and 80C respectively ?
Sivaraman.A.R.
Mehul Jain
(ROC and R&D Executive)
(59 Points)
Replied 26 May 2011
In House Property or 80C, Deduction of interest and principal payment can be made only if the loan is in the name of the Person Claiming it and the firm cannot claim it as an expense because it is personal in nature.
Can anybody plz confirm.
Maheswaran S
(Practicing Chartered accountant)
(34 Points)
Replied 28 May 2011
The only constraint here is that the building loan is in the name of the firm. To claim deduction of interest and principal payment of building loan under houseproperty and 80C both the property and the loan must be in the name of the person claiming it.
CAclubindia
