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Interest on personal loan

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Querist : Anonymous

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Querist : Anonymous (Querist)
21 August 2014 Sir

i took a personal loan from bank & now i am furnishing my ITR, please tell me can i take benefit of interest paid on loan EMI, if yes under which head.

Thanks

Mukesh

21 August 2014 Dear Friend,

If loan is taken for the purpose of business or profession then only you can claim the interest expense.

21 August 2014 Interest/EMI paid on personal loan can not be claimed as expenses.




21 August 2014 depends on the usage of funds. If the funds were used to earn any taxable income, deduction for interest can be claimed

21 August 2014 Nikhil it is personal loan. can not be claimed as business expense.

21 August 2014 personal loan intt or exp. pay by you to bank not eligible to deduction under income tax act.

21 August 2014 Dear Friends,

Personal loans are taken for business purposes all the time. income-tax doesn't discriminate on the basis of what is the purpose of loan as long as the funds have been utilized for the business and the interest is paid out of business.

Even if I take a personal loan and then use it for building a house, deduction under "income from house property" shall be available...the same shall apply for Income from business/profession, Income from other sources

21 August 2014 Nikhil ji

Personal loan by its nomenclature never suggest it is taken for business purpose only.

It may be taken for marriage/other function, for education of child (if education is not sanctioned).

As querist never said the purpose of loan nor he disclosed his business/profession/employment, you can not stretch the power of imagination to say it is taken for business purpose only.




21 August 2014 refer my first answer...deduction depends on the usage of funds...if the funds have been used for earning any taxable income, deduction for interest can be claimed" where am I assuming...I am just stating that if the money has been used for earning income, appropriate deduction shall be made available!!

21 August 2014 One thing is sure we are making hell for queirst to justify ourselves.

22 August 2014 Nikhil and Dulal again, and i agree with Nikhil



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