27 January 2010
NO, YOU CAN NOT CLAIM THE INCOME TAX BENEFIT ON THE INTEREST PAID TO FATHER. THE ACT ALLOWS INTEREST CLIAM ONLY WHEN THE LOAN IS TAKEN FROM SCHEDULE BANK OR HOUSING LOAN COMPANIES AND INSTITUTION APPROVED FOR THIS PURPOSE
The requirement is like this, We can claim deduction U/s.80C for repayment of principal amount only if the loan is taken from Schedule Banks and there is no such requirement for interest U/s.24.
you can claim deduction of interest if u have taken loan from the person other than schedule banks also.
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