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Interest on Shop Loan

Shailesh (Article) (49 Points)

06 July 2010

A shop has been acquired on loan & the same is let out on rental basis and is taxable under the head Income From House Propery. Is the interest paid on loan deductible from rent recieived? If possible give references for the opinion

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5 Replies

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27199 Points)
Replied 06 July 2010

Yes, Definately possibel....... Bcoz Its Rent Received is Not a House Property Income. Its a Business Income. as There is No Ownership..... or May Assumed as OS Income Too........

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Rishab (A.C.A.) (155 Points)
Replied 07 July 2010

Rent received from House, Shop & other commercial establishments will treated as Income from House property.

Manivannan.C (article clerk - CA pcc 1st grp cleared) (80 Points)
Replied 07 July 2010

yes u can claim interest u/s 24. . Act says any building let out for commercial purpose is also income from house property. . So any amount of interest paid can be claimed

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Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 09 July 2010

Originally posted by : AYUSH AGRAWAL
	Yes, Definately possibel....... Bcoz Its Rent Received is Not a House Property Income. Its a Business Income. as There is No Ownership..... or May Assumed as OS Income Too........

i agree with Mr. AYUSH AGRAWAL

Manivannan.C (article clerk - CA pcc 1st grp cleared) (80 Points)
Replied 09 July 2010

The question didnt mean that he s not the owner of the shop. . he acquired the shop by getting loan na.. so there is no doubt in the ownership. . So the Rental income will be charged under house property income and he can claim any amount of interest paid as deduction u/s 24. . .