Dear Friends,
i have a doubt about the following;
1) we hv taken loan for purhcase of House property and receive rent for the said property say rs.200000/-pa. and we pay interest on loan for the the said property say Rs.50000 pa. DOUBT can we deduct the interest amt. from rent u/s 57 of income tax act. if yes/no ?
can we take the deduction of repairs?
thanx
Mr Ganeshan, you cannot show the income received byw ay of rent from your house as income form other sources. It should be shown as Income from house Property.
You will ahve to show the rental income & deduct municipal tax paid on the house from the rent received. From the balance, you can claim 30% of the amount towards expenses incurred. this deduction is fixed in nature & you can claim even if you have not incurred any expenses for the house. Also the interest you have paid can be claimed as deduction. And the baalnce amount will get added to your total income and tax will be calculated accordingly.
Chirag P Shah & Co. Chartered Accountant
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