Mrs. X is the owner of a house property, while interest on borrowed capital paid by her husband. Can Mrs. X Claim deduction under sec. 24b & 80C ?
Suppose in the above problem Mrs. X shows that she has taken a loan from his husband and paying interest @ 10% p.a.
Thanks.
yes she can, provided internal transfer of funds is done between husband and wife as narrated by u above
Repayment of loan borrowed for housing from relatives, friends,non-specified employer/institution are not eligible for deduction u/s80C.Howvever interest paid can be claimed U/S24(b).
Thus in second case,Mrs X cannot claim deduction u/s 80C and can claim deduction U/s24(b)
Yes Mes. x Claim dedeuction under sec 24b but not calim u/s 80c
| Originally posted by : CA Navin Jain | ||
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Yes Mes. x Claim dedeuction under sec 24b but not calim u/s 80c |
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There is no restriction u/s 24b that interest should be paid to banks/financial instituions. So she can claim deduction for interest paid to any one, provided it should be proved. 80C restricts such deduction for repayment of loan from any individuals. So, she can't get deduction u/s 80C.
She can claim in sec 24(b) interest part. But she cannot claim principal as a deduction of Chapter VI - A
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