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Tax Benefit for Commercial Property Loan

22 September 2018

I have taken a non residential property loan for the purchase of Shop and monthly EMI is around Rs.20,000/-. I just want to know, will I get any tax benefit on interest & principal repayment..?

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173896 Points)
Replied 22 September 2018

Yes, Deduction available over interest part from rental income or from business income..........

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Ghanshyam Pandey (42 Points)
Replied 22 September 2018

Deduction from rental income..? Sir, can you please explain in detail.?

Sir, after possession I am planning to rent it out and expected monthly rent is around 9k to 10k.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173896 Points)
Replied 22 September 2018

Yes, from the rental income you can deduct the interest paid over the loan amount, and rest you can offer for tax.

2 Like

Ghanshyam Pandey (42 Points)
Replied 22 September 2018

Thank you so much Sir..

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (173896 Points)
Replied 22 September 2018

Most Welcome, Dear ....

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Ghanshyam Pandey (42 Points)
Replied 22 September 2018

Sir, One more question I want to ask

Suppose, I paid interest amount of Rs.1.5 lakh annually and got the rental income of Rs.1.2 lakh annually. In this case,is there any limit or I can claim full deduction of Rs.1.2 lakh and if yes, under which section..?