24(b) house property

wether shop loan interest is deductible under house property

Replies (4)

I think shop is also considered under house property u/s 28. so it is allowed.

I Consider that You are Meaning Shop Loan, is Business Od or OCC Or Working Capital Term Loan. In that Case It can not be considered u/s. 24. Section 24 Stipulates that Interest On Moneys Borrowed for Construction of Property. 

If the Shop Loan here You mean Loan Borrowed for Construction of Shop Then You Can Claim

in my opinion, interest on shop / office loan will not be accounted for deduction..

specific home loan is needed in which interest payment schedule is mentioned.. interest payment on such loan will only be allowed in order to get deduction... 

in some cases, the officer even goes to the extent of verifying that home loan documents are appropriate or not..  3rd proviso to sec 24(b) states that assessee may need to furnish certificate from the person to whom any interest is payable specifiying amount of interest.

thus as per my knowledge, a loan taken from friends and relatives will also be legal provided they issue a certificate stating interest amount  paid by you.. whereas if you are claiming principle as deduction u/s 80C then loan needs to be taken from notified financial institutions..

As per Section 22 of Income Tax Act, 1961, if  property is used by the assessee for the purpose of any business or profession carried on by him and profits of which are chargeable to Income tax then it is not subject to Income Tax under the head 'Income from house property'.

Hence, if above condition is fullfilled then interst is also not deductible, if not then interest is deductible.

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