prasad (manager) (171 Points)
31 May 2013Dear Experts,
Ours is a software services private limited company. We would like to know what kind of tax benefits our company will get in the following areas:
1. If company buys commerical office space through bank loan what are the tax exemptions.
2. If company buys guest houses/flats for the directors through bank loan what are the tax exemptions.
Thanks in advance.
with regards,
Prasad
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 31 May 2013
In both the cases you would get the following Tax Benefits:
1]. Depreciation on WDV basis at the applicable rates for building as per the I-T Rules whihc comes to 10% p.a.
2]. Interest paid on Bank Loan for the purpose of purchasing the off space/guest house/flats. The entire interest paid/accrued during the F.Y. shall be eligible for tax exemption.
3]. Maintenance/Repairs to the office premises/guest house.
4]. Municipal Taxes paid.
5]. Insurance premium paid.
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