House property

Tax queries 345 views 3 replies

Respected All,

One of my client have constructed G+3 Residential House which around to 1 Cr. For that he taken housing loan of Rs.50 Lakhs. The Interest Paid for FY 2015-16 is around Rs.365000/- . The Part of the property is used for her Residential and Commercial Purpose and Part of the property is Let out and Received Rs.16000/- pm rent. i.e. Rs.192000/- anual.

He is having Business T/o of around 2 Cr.

So at the time of return filing the Interest on Housing loan to be considered 

1. Fully SOP 

          or 

2. Partly SOP and Partly LOP

 

Alos The Business is in nature of providing the labour to D'Mart. So in such nature of business how much NP is to be Shown 

 

Request you to please give your opinion.

 

Regards,

Saumit

Replies (3)

1. If the property is demarketed by different house numbers, you can consider it partly SOP & parly LOP; otherwise fully SOP.

2. Depends upon your nature of control over the labour. Either commission income or Business income.

Dear Saumit

A) As per your explanation, your client has 3 house property for

1. Residential purpose

2. Own business purpose

3. Rental Business

Divide the interest amount for the above purposes on the basis of unit/area.

Deduction of interest on home loan will be-

1.For residential purpose-   your calculation or 2 lakh whichever is lower

2.For own business purpose- Nil (not taxable: read section 22 of Income tax act, 1956)

3. Rental Business- your calculation

B) Calculate your business income using Income computation and disclosure standards issued by CBDT.

Need further responses plz


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register