Instakant Pal (Engineer) 22 September 2019
Hello, i am a salaried person and i have home loan. I want to purchase a shop. Banks are not offering commercial loans but goving top up loan. Can i use money from home loan top up to fund commercial shop purchase. What are the tax implications. Please guide. Thanks
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Kapadia Pravin 23 September 2019
Home loan you can use for shop purchase provided bank permission. I don't think bank permitting such.
No tax implications. You will get interest home loan deduction only to the extent of home loan availed as per bank certification.
You Carry a risk of dis-allowance under 24(2) of
excess interest and also 271(1)(c) penalty risk