How to set off interest?

deduction u/s 24b will be allowed only if there is a house properrt as the person has utilised the amount in for other purpose, there is not any house property so deduction will not be allowed u/s 24(b)

As per my understanding, it won't be allowed

 Not allowed

Because, if such loan is utilised for some other purpose , then it will be deducted accordingly...

For e.g., if its used for some business purpose, it will be debited in P&L and allowed... if for any IOS, then will be allowed in there....

But not u/s 24b

I think please mention which another purpose but it wont be allowed under Section 24.

I also want to go in a detail and want your comment. No bank is going to give housing loan in cash and moreover if they provide housing loan they usually keep the registree with themself until and unless loan is fully repaid.

Am i correct? and if so then is it practically possible??

It's an interesting Topic...

I feel It will be allowed as Deduction u/s 24 since as such there is no condition that the money should be ulitized for the property only..

Further, It will not be allowed as deduction even if it is used for some other business..

Dhiraj, I tell you why i am saying this "you will agree that ALLOWABILITY OF THAT INTEREST IN CASE OF ANY OTHER BUSINESS is indded a question of fact and not the question of law, So how will you prove it"

Hi sir Amir, i know that once bank issues loan, then its on assessee that for what purpose he uses that amount....

But still, how can IT dept allow deduction u/s 24b. as amount is not at all used for house property and then how can anyone claim interest u/s 24b

AS PER SECTION 24(b) INTT. ON THIS LOAN SHALL BE ALLOWED WHEN THE LOAN AMOUNT SHALL BE USED FOR CONSTRUCTION OR PURCHASED OF HOUSE PROPERTY, BUT THE LOAN IS USED FOR OTHER PURPOSE IS NOT ALLOWED.

no deduction will be allowed u/s 24(b)...................

if u  take a property loan it can't be utilised for other purpose. no deduction will be allowed u/s 24(b).

Probably ur talking of a mortgagae loan and not a housing loan hence all this confusion is arising....

It can be utilized or calimed for the purpose which it was borrowed but remember if that money is invested to earn income which is tax free then on account of Section 14A it will not be allowed...

Assesse can claim it as deduction. but if  Loan is not utilized for housing purpose. then AO may disallow the interest. but AO will have to proove that it was used for some other purpose.

 He does not claim any deduction u/s 24(b).

Deductions from income from house property.