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Tax Tutor.
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Sourav9271
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Hello sir,
Lately watched property income lectures quite liked the eloquence and coherence of the lectures.
However as you said that”mortgage interest is not deductible, rather is given as a tax credit in computing tax liability”Sir,
Net income-Paye= Taxable income × tax rates= Tax liabilities.
After finding tax liabilities we need to credit the PAYE and Mortgage interest right?How can I credit mortgage interest in computing tax liability shouldn’t it be rather credited whilst computing tax liabilities?
Tax Tutor
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Mortgage / loan interest is not deductible as a finance expense in computing the amount of property income to be charged to tax on the individual – but relief is instead given as a reduction in deriving the income tax liability as shown in the notes and example.
PAYE would then be deducted in deriving the income tax payable
Sourav9271
Tax Tutor
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