Hbl

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2014 I am a owner of a triplex flat which I have purchased with a borrowed capital from Bank (HBL). The top floor I use as a residence. Part of 1st floor I maintain my Professional Chamber. And ground floor I have letted out to LLB Firm of which I am a partner.

I get a rental income of Rs.24,00,000/- p.a. from that firm and I pay Rs.26,00,000/- p.a. as HBL Interest to Bank.

My question is can i claim this entire Interest amount from my Return of Income. What will be the Income Tax effect of such.

Harsha goyal

Harsha goyal (Expert)
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31 October 2014 Since yours is triplex, the amount of interest paid on home loan shall also be divided into 3 parts.

1. Top floor is used by you for ur residence. hence the out of the total interest of Rs. 8,66,667 (2600000 /3), only Rs. 200,0000 can be claimed in return for AY 15-16 under income from house property.

2. 1st floor is used for ur business purpose. Hence the entire interest of rs. 8,66,667 can be claimed by you under profits & gains from business & profession income.

3. ground floor is let out by you. The entire interest of rs. 8,66,667 can be claimed by you under income from house property.