PERSONAL LOAN CLAIM OR NOT

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This query is : Resolved

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This discussion clarifies whether a personal loan taken for a father's medical treatment can be claimed under tax sections 80C and 24B. The consensus is that personal loans generally do not qualify for tax benefits, regardless of their purpose. The nature of the loan itself, not just its end use, determines tax deductibility.

binay shaw

binay shaw (Querist)
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28 June 2020 Sir
Can I claim personal loan under section 80 C and 24B.Please suggest.
Purpose of this loan -Use father medical treatment.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 June 2020 No you can't claim as it's used for medical treatment.

Punit Gupta

Punit Gupta (Expert)
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29 June 2020 Personal Loan cannot be claimed for any kind of tax benefit, irrespective of its end use.
Its not only the end use, but the Nature of Finance/Loan which determines the taxation benefit of any loan.

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