Professional tax querries

Tax queries 987 views 4 replies

Paras Kumar Jain

Prop.

69 Points Posted on 29 May 2013

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.

Replies (4)

Mayank Maheshwari

Article assistant

99 Points Posted on 29 May 2013

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.

Paras Kumar Jain

Prop.

69 Points Posted on 29 May 2013

Originally posted by : mayank maheshwari

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.

It is a commercial property so, how can we take deuction u/s 80C for principal amount.

Mayank Maheshwari

Article assistant

99 Points Posted on 29 May 2013

Oh yes! commercial property is not eligible for the tax deduction u/s 80C.

Himmat Purohit

Articled Assistant

22 Points Posted on 03 October 2013

Dear sir, One of our client his engaged in business education his deduct profession tax each teacher and wrongly extra payment deduct and fully amount with extra payment deposited....can i claim this extra payment set off next month or quarter ?? Plz tell me.