Interest on housing loan

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Samir (Querist)
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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.

R.V.RAO

R.V.RAO (Expert)
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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

CA. Kirti S. Ganatra

CA. Kirti S. Ganatra (Expert)
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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

R.V.RAO

R.V.RAO (Expert)
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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

CA. GOPAL SONIKA

CA. GOPAL SONIKA (Expert)
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08 March 2008 Interest to father @15 % can be give. But exepmtion will be allowed only on intt paid to bank.

Samir

Samir (Querist)
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18 March 2008 Dear Gopal,u mean to say int on housing loan borrowed from father IS NOT ALLOWED U/s 24.

kartik_somu

kartik_somu (Expert)
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20 March 2008 Interest on housing loan can be claimed even if it is borrowed from other than banks.

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