Interest on HB loan

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2011 sir,
can interest paid to individual money lenders for house building loan(unsecured) be claimed as deduction from "House Property Income" and the principal amount from Sec 80C.

thanks.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

26 June 2011 In my view interest can be claimed by obtaining Interest Certificate from the lender, but Deduction U/s 80C can not be claimed.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

26 June 2011 yes, As per as Sec.24 interest concern can be claimed even loan taken from individual also

but sec.80C principal payment claim not allowed because

Loan should be taken from Specified institutions/deptt only given below

Central or State Government
any Bank including co-operative bank
LIC or National Housing Bank
public company formed and registered in India or co-operative society with main object to provide long term finance for construction purchase of houses in India.
Assessee Employer if public company or public sector company or university established by law or a college affiliated to such university or local authority or co-operative society.

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