BENEFIT u/24 OF iNCOME TAX

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hanif (Querist)
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24 June 2011 ONE OF MY CLIENT HAS TAKEN LOAN FOR REDEVELOPMENT / REPAIR OF SELF OCCUPIED FLAT FROM PRIVATE PARTIES .
IS INTEREST PAID TO THEM WILL BE ALOWED US 24 OF INCOME TAX

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 June 2011 Yes. Interest on capital borrowed for the purpose of repairs is allowed as deduction and can be claimed on accrual basis. In the absence of a specif mention in the section that loan should be borrowed from banks only, I have no doubt in saying that loan can be taken from any person.
Only requirement is to get Interest certificate from the lender.

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