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Home loan deduction

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Amit

Accountant

201 Points Posted on 16 December 2014

I am planning to contruct a house. To get deduction of principal re-payment of loan u/s 80C, the loan has to be from a recognised source. However, this condition does not apply for payment of interest u/s 24. So, my question is, can I take home loan from my wife and pay interest to her and claim deduction of interest u/s 24 within the stiputed limit of Rs. 2 lacs?

Thx in advance

Replies (3)

vineeta yadav

Student CA Final

24 Points Posted on 16 December 2014

YES,YOU CAN CLAIM DEDUCTION UNDER SECTION 24 FOR THE INTEREST PAYMENT ON HOUSE LOAN BUT YOU CANNOT CLAIM DEDUCTION UNDER SECTION 80C FOR THE REPAYMENT OF PRINCIPAL AMOUNT,IF YOU TAKE LOAN FROM UR WIFE.

sri lakshmi revathi

internship

37 Points Posted on 16 December 2014

Yes,Interest deduction allowed u/s 24 .Where as principle cannot be claimed if an individual has taken home loan from relatives or friends or from any other source, which is not mentioned as Specified Institution/Department.

Mahesh Reddy Rachamalla

Dy Manager-Finance

23 Points Posted on 25 January 2015

Dear Vineeta n revathi, thanks for your input. but my query is for getting tax benefit we need to show provisional statement from a lender whereas in this case plz let Us know type of documents need to get from spouse n let us know section which says about home loan from spouse eligible for interest exemption. best regards Mahesh