Interest deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2016 Dear Experts,
Mr. X has taken loan of Rs. 5 lacs from Mr. Y @ 1.5% PM interest, plz clarify weather Mr. Y can claim the deduction of interest or not.....

Please Reply.....

CA MANISH SAXENA

CA MANISH SAXENA (Expert)
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23 March 2016 Hi ,

apparently yes!
From your reading your question i don't find any complication which resist Y from taking the deduction.

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2016 But sir some has pointed out tt to claim the interest deduction the loan must be taken from any financial institution, here in my case the loan is taken from an individual ... your view please....

CA MANISH SAXENA

CA MANISH SAXENA (Expert)
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23 March 2016 yess of course dear "SOME" has pointed right!!
Earlier you did not mention in your query!
To Claim the interest loan must be from financial Institutaion.

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2016 Sir.. it means Mr. Y is not eligible to claim interest deduction right.....
Your view please........

CA MANISH SAXENA

CA MANISH SAXENA (Expert)
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25 March 2016 yes, Mr.Y is not eligible!!