Interest on housing loan
This query is : Resolved
25 December 2007
I have taken a housing loan from bank of India for 20 years at 10.5% interest rate. Now I want to take a loan from my father and repay my loan to Bank of India. Can I pay interest to my father @15% and claim loss from house property.
25 December 2007
THERE IS NO BAR FOR a loan fro father AS PER SEC 24 OF IT ACT . CLAUSE (b) of sec 24 says the amount of any interest payable is allowed as deduction and only a certificate from the person to whom interest is payable on capital borrowed has to be furnished.even INTEREST ON A new loan( BORROROWED for paying old loan) is allowed under sec 24.
R.V.RAO
R.V.RAO
CA. Kirti S. Ganatra
(Expert)
25 December 2007
Hi Rao,
I agree interest is ok it will be allowed but principal amount U/s. 80C will have to be borrowed from specified persons only
I agree interest is ok it will be allowed but principal amount U/s. 80C will have to be borrowed from specified persons only
19 January 2008
KIRTIJI,I AGREE WITH YOU.
THE QUERY RELATES TO INTEREST LOSS FROM HOUSE PROPERTY.HENCE ONLY THAT WAS ANSWERED.
R.V.RAO
THE QUERY RELATES TO INTEREST LOSS FROM HOUSE PROPERTY.HENCE ONLY THAT WAS ANSWERED.
R.V.RAO
CA. GOPAL SONIKA
(Expert)
08 March 2008
Interest to father @15 % can be give. But exepmtion will be allowed only on intt paid to bank.
18 March 2008
Dear Gopal,u mean to say int on housing loan borrowed from father IS NOT ALLOWED U/s 24.
kartik_somu
(Expert)
20 March 2008
Interest on housing loan can be claimed even if it is borrowed from other than banks.
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