A shop has been acquired on loan & the same is let out on rental basis and is taxable under the head Income From House Propery. Is the interest paid on loan deductible from rent recieived? If possible give references for the opinion
Shailesh (Article) (49 Points)
06 July 2010A shop has been acquired on loan & the same is let out on rental basis and is taxable under the head Income From House Propery. Is the interest paid on loan deductible from rent recieived? If possible give references for the opinion
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 06 July 2010
Rishab
(A.C.A.)
(155 Points)
Replied 07 July 2010
Rent received from House, Shop & other commercial establishments will treated as Income from House property.
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 07 July 2010
yes u can claim interest u/s 24. . Act says any building let out for commercial purpose is also income from house property. . So any amount of interest paid can be claimed
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 09 July 2010
| Originally posted by : AYUSH AGRAWAL | ||
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Yes, Definately possibel....... Bcoz Its Rent Received is Not a House Property Income. Its a Business Income. as There is No Ownership..... or May Assumed as OS Income Too........ |
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i agree with Mr. AYUSH AGRAWAL
Manivannan.C
(article clerk - CA pcc 1st grp cleared)
(80 Points)
Replied 09 July 2010
The question didnt mean that he s not the owner of the shop. . he acquired the shop by getting loan na.. so there is no doubt in the ownership. . So the Rental income will be charged under house property income and he can claim any amount of interest paid as deduction u/s 24. . .
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