Commercial property purchase

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adish jain (Querist)
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17 December 2016 Hello,

I have a startup company(Pvt ltd). turnover is around 30 lacs and ITR last I paid is around 70k. I am planning to buy a commercial property which will cost around 42 lacs and I will have to take loan around 25-30 lac. So my queries are-
1.> If I will take loan on company name then I will get rebate in income tax for paid interest ?
2.>If I will lease this property then I will not get rebate in income tax ?? I will have to run my own office in this property ???
3.>There is anyway that I lease it to some one else and also get rebate in income tax?
(if rebate/deduction applicable)
4.>If I will not take loan and make half payment now by company and Half on possession so still I will get any benefits ??? (during under construction duration and after possession)
5.> If I am eligible for deduction and 1st year total paid interest is 2 lac and income tax payable is 1 lac then remaining 1 lac will lapse (lose) or I also can adjust it in service tax payable which I taken for services??
6. And biggest confusion running in my mind is (I know it is silly question and I should not ask but it will be my first investment so....) currently my office rent is 16k (including maintenance) but if I will shit to this office then expense will be EMI + Maintenance = 30k + 9k = 39k (approx) so my expense will increase around = 39-16 = 23k so not able to deciede I should lease this property or use for my own???
Dear Experts, by considering me a novice and a start up plz help me in deciding.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 December 2016 1 Yes you can deduct interest paid as expense of your business.
2 Still you can claim interest as expense and lease rent as income.
3 Yes you can do that.
4 under construction interest capitalize to the asset and claim depreciation.
5 Carry forward the loss for adjustment up to 8 years. It can't be adjusted against service tax payment.
6 Better choice is to own the asset if you are confident of your business and able to source the payment. Your asset value will appreciate.

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