Interest on loan against property deductibility
This query is : Resolved
07 October 2013
If a person buys a commercial property by borrowing from bank as a Loan against property; also the the said is not used for commercial purposes nor is it let out to anyone. Can the person claim interest on the loan as a deduction to income from house property?
Also can the principal portion of the said loan be deductible under section 80C?
Also can the principal portion of the said loan be deductible under section 80C?
08 October 2013
Dear Sanket,
The taxability of such property (even if it is not generating any income as of now) shall depend on the intent of the assessee - whether he bought it for business purpose or otherwise.
Refer to Allahabad high court judgment in the case of goel builder for detailed discussion on the same.
The taxability of such property (even if it is not generating any income as of now) shall depend on the intent of the assessee - whether he bought it for business purpose or otherwise.
Refer to Allahabad high court judgment in the case of goel builder for detailed discussion on the same.
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