Tax Exemption Benefits on Loan to Buy a shop
I intend to take a loan to buy a shop and give it out on rent. Are any tax benefits available in respect of the repayments on such loan?
In this case, the shop will be treated as a “house property”. Hence, the calculation of income from such house property will be done like any other house property and the interest payable on such a loan will be available for deduction without any limit.
However, no benefit will be available in respect of the principal repaid on such a loan. This is because the deduction under Section 80C is restricted to loans taken to acquire/construct residential house property.
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