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Shop loan interest deduction

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NITIN DALSANIA

84 Points Posted on 12 November 2020

home loan interest deduction allow in income tax. u/s 24(b)

what about shop loan interest?

Replies (8)

Quick Summary

This discussion explores the tax deductibility of interest paid on loans for commercial properties, specifically shops. Unlike home loan interest, shop loan interest can be claimed as a business expense under the Profits & Gains from Business or Profession (PGBP) head. While full interest paid is deductible, any resulting loss cannot be set off against other income, and principal repayment is not deductible.

Pawan Vemula

284 Points Posted on 12 November 2020

Is residential or commercial property

NITIN DALSANIA

84 Points Posted on 12 November 2020

Ground level shop in residential apartment

Pawan Vemula

284 Points Posted on 12 November 2020

Is bank provide in the name of home loan are term loan

NITIN DALSANIA

84 Points Posted on 12 November 2020

As a term loan
sir please explain both

ayusmita

Tax consultant

5895 Points Posted on 13 November 2020

You can claim standard deduction as well as interest Deduction for commercial property upto net annual value that is gross rent minus municipality tax
but if there's is loss then no set off with any income head as per new rule and you can not take principal Deduction

Shivam RC

Student

23693 Points Posted on 13 November 2020

You can claim it by showing it as an Expense in the debit side of Profit & Loss A/c under the head PROFITS & GAINS FROM BUSINESS OR PROFESSION ( PGBP ).