Gyan Anand (Retired Sr Manager) (25 Points)
05 December 2013My 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
Harendra Kumar
(Tax Advisor )
(1326 Points)
Replied 05 December 2013
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.
Nishad
(student)
(52 Points)
Replied 05 December 2013
Fenil Shah
(Audit & Tax Executive)
(402 Points)
Replied 05 December 2013
Wont get deduction for interest paid to relative.
Satish
(Article)
(26 Points)
Replied 06 December 2013
Jitndr
(Final Student)
(92 Points)
Replied 06 December 2013
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
NILA REJESH P
(Chartered Accountant)
(815 Points)
Replied 06 December 2013
Interest paid to relative is disallowed under Section 40 A.
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