House property
This query is : Resolved
10 August 2011
assessee purchase a land (with the help of bank loan) & he constructed one room(partly constructed) & given one room on rent. while computing he claim interest benefit u/s 24 (around 3 lac) . Assessing officer disallow on the ground that it is open land only & room construction is like temporarily.
Pl advice is assessing officer right.
Regards,
Pl advice is assessing officer right.
Regards,
11 August 2011
interest under other head. But for this itr must be revised take any expert or CA advice as the fact of the case have to analyse .
Open land revenue not taxable under h p
it is taxable under other sources or businee
so u can get benefit of interest under other head. But for this itr must be revised take any expert or CA advice as the fact of the case have to analyse .
Open land revenue not taxable under h p
it is taxable under other sources or businee
so u can get benefit of interest under other head. But for this itr must be revised take any expert or CA advice as the fact of the case have to analyse .
11 August 2011
Open land revenue not taxable under h p
it is taxable under other sources or businee
so u can get benefit of interest under other head. But for this itr must be revised take any expert or CA advice as the fact of the case have to analyse .
Open land revenue not taxable under h p
it is taxable under other sources or businee
so u can get benefit of interest under other head. But for this itr must be revised take any expert or CA advice as the fact of the case have to analyse .
CA PARAS BAFNA
(Expert)
11 August 2011
The income of rent in respect of a room whether temporary or permanent can be decided according to the construction plan.
.
If the room has been constructed and forms a part of the plan , that can be treated as house property and in that case the assessee's claims for rent can not be
outrightly rejected by the A O. He can not treat it as an income from other sources. Section 22 is in respect of building or land appurtenant thereto.
.
If it can be established that the income which has been received for the room and not for the land, interest can also be allowed as construction costs includes cost of land also.
.
In a case, where the room is not going to make the part of the plan , then only the AO is right in disallowing the interest.
.
If the room has been constructed and forms a part of the plan , that can be treated as house property and in that case the assessee's claims for rent can not be
outrightly rejected by the A O. He can not treat it as an income from other sources. Section 22 is in respect of building or land appurtenant thereto.
.
If it can be established that the income which has been received for the room and not for the land, interest can also be allowed as construction costs includes cost of land also.
.
In a case, where the room is not going to make the part of the plan , then only the AO is right in disallowing the interest.
11 August 2011
If the loan has been taken for construction of room then no one can stop you from taking the deduction but the loan has been utilized for purchase of land than proportion interest can be disallowed.
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