80cc - is repayment of hand loan from relative exempted

dsubash (General Manager - HR) (24 Points)

20 January 2012  

Dear All,

One of my employee has submitted proof of borrowings and repayment from his relative for constructing his house.

He claims that repayment of loan (either from financial or non financial institution) obtained for constructing a house is to be considered as Housing Loan and is exempted under 80 CC of the Income Tax Act.

I would like to know if there is any clause relating to the above and should I consider or not consider this.

Thanks in advance.