Interest on housing loan
This query is : Resolved
03 April 2014
A resident assesse has taken housing loan from bank and build-up a house. in this house assessee has started the business. whether this loan interest has allowed as business expenditure or loss from house property.
03 April 2014
it will have to be deducted from income from house property head only u/s 24(b).
04 April 2014
Dear Tushar, please note that this case wont be covered under 24(b). please read section 22 which clearly state that
"The annual value of property consisting of any buildings71 or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property"."
Hence, if any part of the property is used for business or profession, it shall not be covered house property itself.
Accordingly, the interest deduction can be claimed only under business/profession and not under house property.
"The annual value of property consisting of any buildings71 or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property"."
Hence, if any part of the property is used for business or profession, it shall not be covered house property itself.
Accordingly, the interest deduction can be claimed only under business/profession and not under house property.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 9C- Table 9
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Tax liability on gift amount given to blood relation
- Form 104 stamp paper deed
- Gst registration rule 14A
- Reimbursement of expense- GST applicable or not
- To Whom the Professional Invoice should be Raise
- Query on solved queries
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Transport service POS
- E INVOICE, E-WAY, INVOICE
- GST RATE ON CONSTRUCTION BRICKS ?
- E stamp paper purchase
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
