Personal loan for purchase of house

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This query is : Resolved

CA Santosh Shinde (Querist)

05 January 2011 I have taken a loan for purchase of house property. Can i get deduction for interest paid u/s 24 and principal paid u/s 80C.

CA Sanat Pyne

CA Sanat Pyne (Expert)

05 January 2011 NO, ONLY HOUSING LOAN WILL BE QUALIFIED FOR DEDUCTION.

CA Santosh Shinde

CA Santosh Shinde (Querist)

05 January 2011 but sir the provision says only interest paid on money borrowed for purchase of house no where is written that the loan should be housing loan. Housing loan is the product of financial institutions which is specifically given under the security of house but personal loan is general in nature it can be use for any purpose so ideally it should be allowed as loan taken to purchase a house and i have paid the cheques to vendor. please help me if you are so sure then i will not get any benefit out of it.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

14 January 2011 Act is allowing deduction for Housing interest, so personal loan even taking for construction of House, ho proof will be available that, even Banker will not mentioned any Interest certificate as housing loan, so Mr. Sanat pyne is correct

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