Section 24(b)

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arvind (Querist)
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03 August 2016 I took possession of my flat in 2004 after availing a housing loan from ICICI Bank and start claiming deduction of interest under income from house property. In Feb, 2008, I availed another loan under an written agreement from my relative for repairs & renovation of this flat. I started claiming both the interests paid to ICICI Bank & relative under section 24(b) as I understand both these loans fall under "housing Loan". However, recently assessing authority for AY 2009-10, who is reluctant to give benefit of loan from relative has put onus on me to bring any decided case law in this regard else i may have to forfeit my small refund rather face a demand notice. If anybody can help me in this regard ! - Arvind Gupta (arvindlily@gmail.com)

Rohit A Kadam

Rohit A Kadam (Expert)
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03 August 2016 As far as I know, there is no such restriction under section 24(b) of the IT Act for claiming tax benefit on interest component of the housing loan. You should however furnishe a certificate from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by you.

arvind

arvind (Querist)
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03 August 2016 Thanks Mr Rohit. I did explained to AA the same thing. However, If you have any case laws on this subject that will help him to clear the case.

Rohit A Kadam

Rohit A Kadam (Expert)
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04 August 2016 Hi Arvind, I found a case law where the assessee took a loan from his wife and was allowed deduction u/s 24(b)

Prem Chadha vs ITO 92 TTJ 69 (Del 'I')

Read more at: https://indiankanoon.org/doc/957626/

arvind

arvind (Querist)
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05 August 2016 Thank You, Kadam, It will be helpful in dealing with AA in person. Thanks once again.

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