03 August 2016
I took possession of my flat in 2004 after availing a housing loan from ICICI Bank and start claiming deduction of interest under income from house property. In Feb, 2008, I availed another loan under an written agreement from my relative for repairs & renovation of this flat. I started claiming both the interests paid to ICICI Bank & relative under section 24(b) as I understand both these loans fall under "housing Loan". However, recently assessing authority for AY 2009-10, who is reluctant to give benefit of loan from relative has put onus on me to bring any decided case law in this regard else i may have to forfeit my small refund rather face a demand notice. If anybody can help me in this regard ! - Arvind Gupta (arvindlily@gmail.com)
03 August 2016
As far as I know, there is no such restriction under section 24(b) of the IT Act for claiming tax benefit on interest component of the housing loan. You should however furnishe a certificate from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by you.
03 August 2016
Thanks Mr Rohit. I did explained to AA the same thing. However, If you have any case laws on this subject that will help him to clear the case.
CAclubindia
