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. 

Replies (3)
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

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.

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details