Tax related

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Hlw everyone,
my query is as one of my friend tooks the loan which is for business expansion under lpa emi of which is 80000.... as he is a retailer also letout house property..

1) can he tooks 24b advantage here
2) whether in his itr he needs to show income of atleast 80000*12=960000.... or can he show less income to save the tax as if show 60000 income any notice he will get
Replies (5)
But, As per query the Loan is in Business activities. So, It's not claimable under sec 24b. The said sec allow only House Property loan Interest...


But, You can book the Interest amount to PandL account in its not a Personal Loan...
So whether renting activities treated as business activityy
You ll Elobrate Your query again...

What You mean "Business Expansion" as per Your query??

What You mean "As he is a Retailer" as per Your query??
Sir actully its acompicate case as lets tell u the whole....

my firend tooks the loan of 50laks in nov 17 emi of which is around 80000.... Actully he let out his property.... Now the laon he tooks is mortgage aganst property bjt the purpose in the contract is written as business expansion....
as he has a retail shop gstreg of which os against his wife name.....
as huge amt like 17lacs rs of loan credit to his account whoch provided by hdfc housng loan....
now what min. income he needs to show in itr of 17-18 so that he will questionable in income tax dept....
hi shailender
what I understood as per your query is
Borrowed amount (Mortgage loan) : ₹5000000 ; EMI: ₹80000 on loan; Property is let out: Rent received??

so first of all how much rent he is getting on letout property as u mentioned
and secondly income to be declared in ITR is usually determined considering the transactions in Bank Statement, so consider the receipts and payments in bank , identify its nature and also consider the expenditure incurred like interest on loan and any other personal drawings... accordingly you have to consider the gross turnover and profit...
this is what I do in cases of my clients

let's see what Raja sir has to say about it as he is a better person to guide


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