24 February 2020
Hi, as per my understanding interest on the housing loan taken from family and friends can also be claimed under s24 as a deduction st limit of 2lacs. However an interest certificate is needed from the person from whom loan is taken. Can you please advise how this certificate can be obtained?
25 February 2020
Your understanding is correct. Deduction for Interest paid on Loan taken from Family/Friends is available U/s 24 upto Rs 2 Lakhs. Howsoever, additional deduction for Interest U/s 80EE/80EEA is not available and Deduction U/s 80C for principal payment is also not available. You make take a certificate from the lender for payment of Interest & Principal for the year. Also keep ready the bank statements, to substantiate the payment, if required in case.
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