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Housing Loan Interest U/s. 24

GANTA NARENDRA BABU (Self Employed) (41 Points)

24 June 2017

I am taken a loan against fixed deposits, Rs. 6 lacs, the same should be used for the purchase of House, and my question is interest on such loan allowed as deduction under section. 24

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4 Replies

rama krishnan (12234 Points)
Replied 24 June 2017

if it is housing loan then you can avail or else no

Poltu Ghosh (Job) (1865 Points)
Replied 24 June 2017

Yes because its the end use of loan that matters not the nature of loan. Even presonal loan utilized for the acquisition or construction of home and interest paid on that personal loan is eligible for deduction u/s 24.

The burden of proof in case of Home Loan is not stringent as the nature and end use of loan is same but in case of other loans so utilized, you need to keep the proof like amount of expenditure, your source of income, time of expenditure and bills etc so as to justify your claim.

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