House property

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This query is : Resolved

CA Megha Vijay (Querist)

01 August 2012 If one has purchased industrial plot and constructed a godown on it. Later on rented the same and receiving rent on it. The rent received from such godown shall come u/s 24 (house property) or no? If yes can he avail Standard deduction and interest on loan paid as deductions?
If not u/s 24 then under which section such income will come and what deductions can b claimed?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

01 August 2012 If you read carefully, no where in Section 24, the word "Residential" has been inserted with the word "Property".
.
So, you can claim Standard Deduction as well as Interest.
.

CA Megha Vijay

CA Megha Vijay (Querist)

01 August 2012 ok. thank u sir

CA Ghanshyam Joshi

CA Ghanshyam Joshi (Expert)

02 August 2012 5.2 CONDITIONS FOR CHARGEABILITY
(i) Property should consist of any building or land appurtenant thereto.
(a) Buildings include not only residential buildings, but also factory buildings, offices, shops, godowns and other commercial premises.
(b) Land appurtenant means land connected with the building like garden, garage etc.
(c) Income from letting out of vacant land is, however, taxable under the head “Income
from other sources”.

hence taxable under the head of house property. the assessee can claim standard deduction and deduction for interest on loan.

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