Interest expense set off from rent earned.
This query is : Resolved
18 August 2015
Suppose i put my residential house on mortgage and get a loan against it and i am paying interest on such loan taken, now from such loan acquired i am purchasing another property and earning rent by giving such new acquired property to a tenant.
in this case can i claim deduction of interest on loan from the rent income earned from second property by showing direct nexus between the two amounts of loan taken and amount spent on acquiring the second property?
in this case can i claim deduction of interest on loan from the rent income earned from second property by showing direct nexus between the two amounts of loan taken and amount spent on acquiring the second property?
Deepti Asawa
(Expert)
18 August 2015
YES, YOU CAN CLAIM INTEREST ON HOUSING LOAN IN THIS CASE
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19 August 2015
But can i claim the same under other sources head by showing that to earn the rental income on the new acquired property we have incurred the expense of interest on loan taken.
Deepti Asawa
(Expert)
20 August 2015
If property is a building than you should show your rental income in Income from house property head.
If property is other than building than both rental income and interest should show in income from other sources.
Expenditure nature depend on income source. So that interest also charged on Other source if rental income reeived from other than building
If property is other than building than both rental income and interest should show in income from other sources.
Expenditure nature depend on income source. So that interest also charged on Other source if rental income reeived from other than building
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26 August 2015
Thanks for the response.
What if both the above properties are my commercial establishments?
What if both the above properties are my commercial establishments?
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