Pros & cons of commercial property
Atanu
(Querist) 19 July 2012
This query is : Resolved
Dear Sir,
I want to purchase a small commercial shop and give it on rent. I am a salaried individual and living at Thane. I wanted to know what are the pros and cons for salaried person investing in commercial property. Kindly suggest whether I should go for it or not. if not then what should be best option to invest in property.
ashutosh mishra
(Expert) 19 July 2012
What do you mean by your expression " what are the pros and cons for salaried person investing in commercial property."
Any body can buy any property of his choice paying consideration which he can count for when inquired by tax authorities.So as salary man if you have the sum and can count for it then even as salary man you can go for it.
Atanu
(Querist) 19 July 2012
Thanks for the resonse.
Will i get tax benifit on this incase if i take loan?
Atanu
(Querist) 19 July 2012
Thanks Ashutosh
ashutosh mishra
(Expert) 19 July 2012
In the case of commercial properties and let-out premises, there is no upper limit on the deductibility of the interest while it is limited to Rs.150000/=00 for self occupied houses.Hence in the case of commercial, let-out, or deemed let-out properties, take as much loan as can be obtained.
Raj Kumar Makkad
(Expert) 19 July 2012
There is no rebate of income tax on the rental income derived from such commercial shop and even there is no rebate of tax if take loan from bank for this purpose. Rebate is only for residential property and not on commercial property meant for earning rent.
