Commercial residential property loan
4 months ago
I wanted to buy commercial residential property loan for a semi commercial property.. do I have tax benefits of I do so unlike we have it for residential property loan?
Anything claim wise also?
A.Dear Client,
Commercial properties are classified as capital assets. Profits from selling them after 24 months qualify as long-term capital gains (LTCG) and are taxed at 20%. If the property is sold within 24 months, it falls under short-term capital gains (STCG) and is taxed based on the individual's tax slab. You have to buy only residential property to save tax on capital gains arising out of the sale of any other property. This means you cannot buy land or commercial property to save capital gains tax. You can hold only one more property other than the new residential property when claiming under section 54F of the Income Tax Act.
Commercial properties are classified as capital assets. Profits from selling them after 24 months qualify as long-term capital gains (LTCG) and are taxed at 20%. If the property is sold within 24 months, it falls under short-term capital gains (STCG) and is taxed based on the individual's tax slab. You have to buy only residential property to save tax on capital gains arising out of the sale of any other property. This means you cannot buy land or commercial property to save capital gains tax. You can hold only one more property other than the new residential property when claiming under section 54F of the Income Tax Act.
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A.Dear Client,
If you’re buying or constructing a building for commercial purposes, you can avail the commercial shop loan and the interest you pay on your loan will be totally deductible. The fees related to obtaining a loan are also deductible in full. This can be claimed from the year during which you take possession after the construction is complete. You may also claim five equal instalments for any interest paid over a given year before taking possession of the commercial property. While you cannot claim any notional rental income-based deductions, it’s still possible to claim both depreciation and interest paid on your loan and/or another type of financing as tax deductions. As a business owner, you can avail a business loan for shop and claim all of the actual costs of maintenance and repairs in full.Tax benefits on loans for semi-commercial properties are different from those on residential properties. For commercial or semi-commercial properties, the interest paid on the loan is eligible for a tax deduction under Section 24(b) of the Income Tax Act. However, the deduction is applicable only on the interest component, and there's no benefit on the principal repayment. Additionally, the property should be let out, and the deduction is restricted to the extent of the interest paid during the financial year. It's advisable to consult with a tax professional to get personalized advice based on your specific financial situation and the nature of the property transaction.
Thankyou
If you’re buying or constructing a building for commercial purposes, you can avail the commercial shop loan and the interest you pay on your loan will be totally deductible. The fees related to obtaining a loan are also deductible in full. This can be claimed from the year during which you take possession after the construction is complete. You may also claim five equal instalments for any interest paid over a given year before taking possession of the commercial property. While you cannot claim any notional rental income-based deductions, it’s still possible to claim both depreciation and interest paid on your loan and/or another type of financing as tax deductions. As a business owner, you can avail a business loan for shop and claim all of the actual costs of maintenance and repairs in full.Tax benefits on loans for semi-commercial properties are different from those on residential properties. For commercial or semi-commercial properties, the interest paid on the loan is eligible for a tax deduction under Section 24(b) of the Income Tax Act. However, the deduction is applicable only on the interest component, and there's no benefit on the principal repayment. Additionally, the property should be let out, and the deduction is restricted to the extent of the interest paid during the financial year. It's advisable to consult with a tax professional to get personalized advice based on your specific financial situation and the nature of the property transaction.
Thankyou
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A.Dear Sir,
You have to contact any chartered accountant or auditor as your question involves financial matter.
You have to contact any chartered accountant or auditor as your question involves financial matter.
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