15 October 2008
interest on housing loan is only allowable, but is it necessary to take such loan from banks or financial instituition only ? loan for a person, is it valid ?
17 October 2008
No, It is not necessary that the loan should be taken only from housing finance companies. One may take loan from any company or person, even from family members. The assessee has to furnish a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.
However deduction under 80C for principal repayment is not allowed
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