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
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