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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)

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.

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