executive
21 Points
Posted on 09 October 2013
Hello,
i would like to understand whether the interest paid on a mortgage loan taken in India , against an Indian property, to repay a mortgage loan taken in the USA against a property there, which money was used to fund the acquisition of a property in India, can be claime d as a deduction?
the sequence of events is as follows.
1. a mortgage loan is taken in USA by an nri , against a property there and the funds are transferred into the NRE account of the NRI borrower in India.
2. he purchases a property in India with the same funds.
3. he avails a loan against property in India against another property of his and uses those funds to repay his US bank within 60 days of taking the original loan in the USA and also within 60 days of acquiring the property. Thus the mortgage loan taken in India has indirectly funded acquisition of the property in India using the US loan as a stop gap measure.
can the NRI claim a deduction for the interest paid on the Indian loan under section 24 by claiming that the funds were used for acquisition of property in India? what documents will be required to makev this claim?