Deduction of interest u/s 24(b)

Hello, I have taken a House Building Loan from a local co-operative society, can I claim the deduction u/s 24(b) for interest & 80C for the principal amount.
Replies (6)

Yes, you can claim deduction  u/s 24(b) for interest and also for 80 C for the principal amount.

Hello, thanks for the answer:

Can you please clarify that if I take the Housing Loan from an individual say a family member & regularly pay the interest/principal through cheque, claim the benefits u/s 24(b) & 80C?

Under Section 80C. It is clearly mentioned that repyment of loan from bank including Co operative bank is deductible( See clause c below). Also interest is deductable u/s 24(b) provided that the certificate has to be obtained specifying the sum and purpose of loan.

Section 80C: 

(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

  (a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

  (b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

  (c) repayment of the amount borrowed by the assessee from—

 (1) the Central Government or any State Government, or

 (2) any bank, including a co-operative bank, or

I have taken the loan from Co-operative Society not Bank. There aren't any such mentioning for sec 24 (b). Pls help. Can I claim now?

You can claim the interest u/s 24(b) even if it is from co operative society. Sec 24(b) stipulates that the person who claim the deduction should get a certificate from the person to whom you make payment ie, in your case Co operative Society.

U/S 24(b) you can clain deduction on Interest on borrowed capital from Co- operative society..

 

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