HOUSE PROPERTY LOAN

if loan taken from  institution  specified u/s 80C(xviii) - 80C & 24(1) allowed

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

Thanks,

Lovenish Bansal

THANKS EVERYBODY.

FINALLY IT IS UNDERSTOOD AND CLEAR

Hi!

Loan taken from  friend or personal in nature is not eligible for 80C( Principal portion) , but interest is eligible u/s 24(b).

As per the provisions of sec 24(1) Under the head Income from house property shall be computed after making the following deductions where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital.

No where in the section it is mentioned that the borrowed capital should be a housing loan or a loan for the purpose of constructing, purchasing or repairing the house. So the interest on personal loans can be claimed U/s 24(1).

Again as per sec 80C(xviii) for the purpose of purchase or construction of a residential house property where the payments are made towards the any instalmentoe part payment of the amount due to the specified entities. So personal loans cant be claimed here.

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

What will be the deduction in case the Housing loan is taken jointly by , say, father and son in equal proportion ?

The interest and Principal can be claimed in equal proportion by father and son. 

Deduction can be claimed by owner

Thanks,

Lovenish Bansal

Suppose, the House property is purchased by Father and Son-1, and the loan is also taken in the name of Father and Son-1 jointly, and they are availing the deduction u/s. 24 and 80 C for the years. Now, Father has unfortunately died, and the loan after the death is been paid by Son-1 and Son-2 in equal proportion.

Now, my question is

1. Whether the SOn -2 can avail the deduction u/s. 24 and Section 80C along with Son-1 for payment of installment in equal proportion after the death of father.

2. Now, the House property is not in the name of Son-2, nor the Loan is taken by SOn-2. Can Son-2 can claim the deduction u.s.  24 and 80C

Regards,

Anand