Claiming tax deduction on registration charges buying commercial property which is rented out

Hi helpful gurus,

My wife and I are NRI living and working (salaried) in Europe.

We both have recently purchased a 2 year old commercial property as a joint owners and have rented it out. 

We have done some repair before renting it out. 

Our tenant is deducting 30% TDS+GST and it is reflecting in our 26 A/S form. 

What are all the tax deductions that we can benefit from when filing income taxes and requesting for refund? Expenditures are Property Registration Charges was something around 10 Lakhs, Interest on Loans are around 3 Lakhs, Municipal taxes. Can we carry forward the Property Registration Charges as losses to the next years? Or only 1.5 lakhs of registration fees can be claimed as part of 80C? 

I think we must file under income from house property and not business income. 

Please help me by clarifying. Thank you. 


renting of property will be shown under the head House property (unless renting is not your business) you cannot claim municipal tax as loss however under section 24b you can claim interest paid upto 2 lakhs and you can set off house property loss upto 2 lakh under any head and yes you can claim registration charges under 80c subject to 80cce
Partner at N. Gamadia & Co.

You can very well claim Municipal Tax as deduction from the rent amount provided it is paid by the property owner and it is paid in that year itself.

Partner at N. Gamadia & Co.

If your total income falls in a lower tax bracket and TDS on rent is being deducted at 30% then kindly apply for a lower TDS Certification with your jurisdictional assessing officer. So that the tax deducted from rental income reduces and you not have to claim a refund at the time of filing return.



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