interest deduction on home loan

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2011 If i get a property by paying no consideration and showing the amount as a loan, and take a loan against property to repay it, so will the interest & principal repayment be allowed as deduction under income tax?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

23 March 2011 No, it is not housing loan, so not eligible

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)

23 March 2011 You cannot claim any interest in the above transaction doesnot amount to housing loan and as such nothing will be availabe for tax deduction..

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)

24 March 2011 Hi,

Agreed with Experts

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

Querist : Anonymous

Querist : Anonymous (Querist)

24 March 2011 plz kindly clarify my doubt that when the interest paid on unpaid amount of house to the seller and the interest paid to relative for providing such loan is eligible for deduction u/s 24 so why not against property loan that has been used to pay the amount of house

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)

24 March 2011 Hi,

First Clairfy why you have to take a loan when you have got the Property with out any Consideration??????

Thank you,

Regards
CA. Lohith. J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons

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