HOUSE PROPERTY LOAN

only for housing loan you will get exemption not for other loans...you cant claim personal loan to that sections...

Interest can be claimed as deduction u/s 24(1), but for principal repayment it must be housing loan.

Thanks,

Lovenish Bansal

Mr Bansal,

As per what i read , it is just the opposite. for 80 C we get the deduction but not for 24(1). can u confirm

Yes Sir, I am sure about that.

Thanks,

Lovenish Bansal 

No mr Bansal,

I am reading Sec 24(1), which says the the loan certificate must specify that it is for housing loan

Hi All,

yupp Mr. Lovenish is correct.

Lovenish is right

Sir, section does not specify that it must be a housing loan. It says that if loan is taken for acquisition or construction of property, a certificate has to be taken to give the effect of that section. Even loan taken from individual, interest is allowed as deduction. But same is not true u/s 80C 

Thanks,

Lovenish Bansal

I am quoting a FAQ of a reputed site which is actually confusing me

Are there IT benefits on personal loans?

Yes. If you have taken a personal loan from a bank, HFC, LIC of India, employer (State/Central Govt., local body or public limited company) and utilised the money for purchase or construction of a house, you can claim IT benefits for both principal and interest paid. If you have availed loan from a friend/relative, you can claim IT benefits on interest paid only. If you have availed loan for renovation of your house, you can claim deduction up to Rs. 30,000 pa on interest paid.

ya,dats wat lovenish sd..dat only d interest part is allowed u/s 24..80 C will nt be allowed..unless housing loan..n frm d mentioned banks or employer..

As in the respective sec it is said that if the loan is taken for the purpose for the construction or purchase of the house than only it interest payment will qualify for deduction u/s 24(1) so when we take the personal loan than it will not qualify for deduction

As in sec 80c also it is mention repayment of housing loan on other hand in ur case it would repayment of personal  loan not housing loan 

Mr. Vinay is right

As you mention in FAQ it is clarify that, principal is deductible only when it is taken from institution specified u/s 80C (xviii) for the purpose of construction of house property. 
 

Thanks,

Lovenish Bansal

So the jist is -

if personal loan taken from reputed institution - 80C & 24(1) allowed

if personal loan taken from friend/relative -only  24(1) allowed

Am i right