Yea ......thanks sivaram for clarrification.........I thought of in other way.............
Treatment of interest
Page no : 2
(Guest)
| Originally posted by :sandeep pandey | ||
| " | How to treat interest on borrowed loan for construction of house property which is for business profession? Its urgent..................................... Reply please................. | " |
As the house property is used for the purpose of running business, then interest on loan before the construction should be capitalised...Agree with Gaurav Raichura...
Gaurav Raichura
(CA-Final Student)
(82 Points)
Replied 26 October 2009
Kind. Attn. Sivaram
Mr. Sivaram, AS-16 givens only examples of some of the qualifying assets and Mr. Suri Kota has mentioned one of these examples in his reply i.e. manufacturing plants. So I replied him that it can also include factory building.
As far as your question relates, my answer is qulifying assets also includes administrative buiding because generally a new building can't constructed within short period.
Futher, if the house property is DLOP, the computation of the income of such house property is to be made considering it as Let Out Property and in LOP cases, interest fully deductiable u/s. 24
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