Dear All,
Our Company has provided loan @ 7% per annum. Some employees want that we will treat this loan as housing loan. what will be documentary evidence required for us to allow this loan as housing loan and whether the interest paid on this loan is allowed as deduction us 24b? please clarify the same.
thanks
Parmod
A loan sanction letter (on the letter head of the company) specifying that, loan has been given to its employees as "housing Loan". Also, Repayment schedule must also be provided by company.
It is not neccessary for company to collect document relating to credtworthyness of its employees (like bank--which asks for ITR copy, salary certificate etc.) This depends upon the policy of the company.
Yes, interest on loan is allowed as deduction. (company must give annual interest statement).
Wait for more replys on this.
as per my knowledger int on loan from Bank are only allowed as deduction
CAclubindia
