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Processing fees on housing loan as interest

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Querist : Anonymous

Querist : Anonymous (Querist)

30 January 2012 Hello Experts,

Pls help me on the below query:

Whether the processing fees on Housing Loan Interest can be considered as a part of Interest itself for Income Tax Purpose??

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 January 2012 yes. it is available.

In section 24 is telling only Interest portion allowed

but Income tax definitions under section 2(28A)under Income tax act, Interest definition has been given as follows:

“interest” means interest payable in any manner in respect of any moneys borrowed or debt incurred (including a deposit, claim or other similar right or obligation) and includes any service fee or other charge in respect of the moneys borrowed or debt incurred or in respect of any credit facility which has not been utilised

so according to this we can claim processing fees also

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