Dear Freinds,
Our one of the client is professional (Doctor). He is going to acquire one commercial propety in few days. This propety will remain vacant for two years no receipts will arise from this property. So whether we can deduct tthe amount of depreciation & loan interest form his professional income or not.. As other alternative Can we show interest under hosepropety head and claim deduction of interest on borrowed capital & set off this loss against his professional income.
No you cannot claim depriciation and its loan interest from his professional income, as this commercial property is for investment purposes. However, you can claim deduction u/s 24 of Income tax act 1961, for interest of loan. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower.
Also you can claim deduction of principle amount u/s 80C of Income tax act. Home loans upto Rs 25 lac will be allowed additional deduction of interest of 1 lac Rs.
And yes you can set off losses of House property and PGBP.
| Originally posted by : mayank maheshwari | ||
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It is a commercial property so, how can we take deuction u/s 80C for principal amount.
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Oh yes! commercial property is not eligible for the tax deduction u/s 80C.
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