Home Loan Deduction & accounting Impact in books

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Ravin Soni (Querist)
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18 October 2010 Please solve my Query

My relative is working as medical doctor in Hospital and he earned Salary in the year 2009-10.He buy one Home {Flat} and borrowed Home Loan and in form 16 take deduction.

Now from Oct.-09 in the middle of the financial year he started clinic in these residential house.

His total income for the F.Y.2009-10

1} Salary Income

2} Business Professional Income

Now in his Business Profession shall he take benefit on Interest on Home Loan and Principal? as mention in form 16 by employer

shall he take in his business as Fixed Assets in the F.Y.2009-10

Please guid and give impact in accounting entry.

CA Pramod Jain

CA Pramod Jain (Expert)
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18 October 2010 he can take interest and principal home loan payment benefit.

Ravin Soni

Ravin Soni (Querist)
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20 October 2010 thanks

but i want to know about Whether House treated as his Fixed assets in Balance Sheet ??

As per Municipal corporation House treated as commerical purpose ??

can i debited exp.like House tax, & his monthly maintainance in income & Expenditure account.

dear sir

kindly advice how to treate this assets in balance sheet

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