Tax Treatment of interest and Rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 Mr. X books a shop in a mall whose construction is under process. As per agreemetn the builder has pay the interst on the loan taken by Mr. X during construction period which was committed and builder has also pay the Rent of proposed shop as builder has not complete the mall in given stipulated time frame and TDS has also been deducted by the Builder on rent paid to Mr. X.

Now what tax treatment will be given in the return of Mr. X

Kindly advise us through this forum or directly with our email id. i.e. fcameena@rediffmail.com

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 July 2010 If interest is being paid and being reimbursed by the builder then no interest will accrue as income.

Rent being received will be taxable under the head income from other sources as no rent is being received on property.

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