Home loan taxation benefits

Yes
Under section section 80C you won't get Deduction if it will be borrowed from your friend as 80C only allows Deduction where the payment made to

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

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

(3) the Life Insurance Corporation, or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India

&

Also you will not get the benefits of Interest paid on housing loan under section 24(b) ( upto 2 Lakhs in case of self occupied property)

@ CA Anoop Kumar Sharma.Please  find the attached screenshot.Please let me know the correct information.

Dear sir as under section 24(b) there is no mentioning about specified banks but however following lines you will find as


No deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.


So if you are taking loan from your friend you might claim the interest deduction under 24b after furnishing interest certificate but you won't get benifits of section 80C( as mentioned above) so kindly compare both situations where you are getting benifits & select appropriate option to avoide legal consequences

I know,I'm not eligible to claim section 80C but I didn't have clarity about section 24..wheather to claim or not.

Sec 24 is under house property