If the house maker i.e. Mother & Father is in profession and if they purchased a residential property by their share i.e. 50% & 50% or any other Share and this property used for commercial purpose then they may claim u/s. 80C. The exemption of Interest on Loan of House property u/s. 24(b) is illegible.
As far as the claim for stamp duty u/s 80C for purchase of house property is concerned, it may be noted that there is no bar on use of the property. Section 80C speaks about the admissibility of deduction if a residential house property is purchased. We are of the opinion that the deduction will be available even if the property is subsequently used for commercial purpose.
The best way could be the letting out of the property (or part of the property) by the joint owners to the firm. The rent could be apportioned amongst the joint owners in the ratio of their ownership in the flat. Even if the mother is a partner in the firm, the deduction would be admissible in the hands of the firm for rent payment. Both the joint owner can show their share of rent received from the firm as income in their Individual return.
he income from flat, even though let out for commercial purpose, is assessable under the head “Income from House property”. As far Interest deduction u/s 24(b) is concerned, there is absolutely no bar in claiming such deduction even if the residential house property is used for commercial purpose. As far deduction u/s 80C towards the principal part of the repayment is concerned, we are of the opinion that the deduction can be claimed as there is nothing to prohibit the assessee’s claim u/s 80C. Subject to reasonableness, the firm is eligible for deduction towards rent payment, even in case the rent is paid to the partner of the firm.
The assets could be treated as a capital asset if no depreciation is claimed by the assessee. Also, the income from the assets let out is proposed to be offered as “Income from House property” (& not Income from Business/Profession) which further strengthens the treatment of assets as capital assets.)
As far as the claim for stamp duty u/s 80C for purchase of house property is concerned, it may be noted that there is no bar on use of the property. Section 80C speaks about the admissibility of deduction if a residential house property is purchased. We are of the opinion that the deduction will be available even if the property is subsequently used for commercial purpose.
The best way could be the letting out of the property (or part of the property) by the joint owners to the firm. The rent could be apportioned amongst the joint owners in the ratio of their ownership in the flat. Even if the mother is a partner in the firm, the deduction would be admissible in the hands of the firm for rent payment. Both the joint owner can show their share of rent received from the firm as income in their Individual return.
he income from flat, even though let out for commercial purpose, is assessable under the head “Income from House property”. As far Interest deduction u/s 24(b) is concerned, there is absolutely no bar in claiming such deduction even if the residential house property is used for commercial purpose. As far deduction u/s 80C towards the principal part of the repayment is concerned, we are of the opinion that the deduction can be claimed as there is nothing to prohibit the assessee’s claim u/s 80C. Subject to reasonableness, the firm is eligible for deduction towards rent payment, even in case the rent is paid to the partner of the firm.
The assets could be treated as a capital asset if no depreciation is claimed by the assessee. Also, the income from the assets let out is proposed to be offered as “Income from House property” (& not Income from Business/Profession) which further strengthens the treatment of assets as capital assets.)
0 comments:
Post a Comment