My Son buying an apartment in Gr noida approx cost 37L. He is proposing to take 25 L loan from Bank and Rs. 7 loan from relative. My question is "can he claim income tax rebate for the interest paid to relative along with the bank interest.
Thanks
Gyan Anand
Sir,
You may be taken the benefit of interest of loan and also taken the benefit of repayment of loan amount.
Further if any quires plz intimate to us.
Wont get deduction for interest paid to relative.
NO REBATE ON INTEREST PAID TO RELATIVE
Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions
Interest paid to relative is disallowed under Section 40 A.
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