Hp interest

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 September 2012 If an assessee takes loan from friend or relative for buying house ,and if there is a valid agreement to repay int and loan amount ,can he claim deduction for Int on borrowed capital under Income from House property.Or only banks /financial institutions loan would be valid? Pls explan with reference to construction within 3 yrs from date of borrowing

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 September 2012 Interest on borrowings from individual is an allowable deduction u/s 24(b) for calculation of income from HP under the Income tax Act,1961.

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2012 Is there any circular or court case order supporting this (Could you pls send that ,if possible ) or only provisions relating to HP income u/s 24 govern this .Thanks in adv

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