Is corporation tax paid on home is having rebate on income tax?
Posted on September 30, 2008 by admin
malhari h asked:
Also if i have home loan also i am paying rent as i am living some where else is both can have benifit from income tax
Also if i have home loan also i am paying rent as i am living some where else is both can have benifit from income tax
why would you pay corp tax on home? there’s a lot your business can benefit, but not you.
If the house is given on rent, then you can claim corporation tax as deduction. Also you can claim 30% of the net rental amount for repairs. (even if you do not repair the house). But you have to pay income tax on the rental house depending on your income.
Regarding the home loan on your own house:
Your home loan repayment installments contains principle repayment portion and the other is interest. The principle amount repayment portion can be claimed as deduction u/s 80C up to one lakh per financial year (either self occupied or given on rent). The interest part is also eligible in two ways. If the house is self occupied, then you can claim the interest up to 1.5 lakhs per year. If the house is given on rent then you can claim the actual interest paid as deduction. (even greater than 1.5 lakhs).
The house in which you are living on payment of rent will not have any tax benefits for you.