11 April 2013
My doubt is that if I take a loan for purchasing a house from a friend/relative or against FD from a bank, can I claim deduction u/s 24b of the interest amount on such loan?
sec 24 says that if you construct/acquire a house property from borrowed funds you can take befit of interest for Rs. 30000/150000 as the case may be, irrespective of the source from where you have borrowed funds..
difference b/w funds borrowed from bank and relative /friend is matters u/s 80C on repayment of loan..
because benefit of loan repayment to bank / financial institutions gets eligible to be deducted not repayment to friend/relative...
CAclubindia
