Interest on commercial property loan

Yes, if the net result of computation of income from that commercial property is negative. Other than a self occupied residential property, there is no distiction between residential and comercial properties. But for the second pro[erty, whether residential or commercial no claim can be made for repayment of principal under 80 C

Thank you for your reply. 

I asked this question because I was told that business loss cannot be offset against salary income. So if I am incurring loss on commercial property (i.e interest exceeds rental income) then the same can be used to reduce tax liability from salary.. In that sense this will not be treated as business income/ loss? Is that right? 

It will depend on how you are treating this income from commercial property in your income tax returns . If you are treating this income as income from business then you won't be able to off set, the reason you have told us yourself, but however if in income tax return you are claiming this interest from commercial property then it will be classified as income from house property and the loss under head income from house property can be used to off set income from any other head.