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Interest on Housing loan

Naveen (student) (324 Points)

06 March 2021  
Hii guys

Plse someone clarify. If possible plse attach or mention if there is any income tax circular or clarification for this

My brother purchased a house property worth 45 lacs. For that he took the loan in the following way

1. Personal loan of 15 lacs from a bank.
2. Loan from his friends of Rs.5 lacs
3. And remaining 25 lacs as housing loan from another bank.

Now my doubt is Can he claim Interest on housing loan u/s 24b and principal repayment u/s 80c for all these loans mentioned above or just for housing loan taken from bank i.e personal loan and loan from friends are not eligible for 24b and 80c..

Thanks in advance

 2 Replies

Sandeep shetty (Sr Accountant) (292 Points)
Replied 08 March 2021

Hi,

You can claim deduction under section 24b and 80c only for the housing loan taken from bank or financial institution 

You cant claim deduction for Personal loan and loan from friend under section 24b while computing income form house property 

please refer this link 

https://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?path=/documents/left+menu/ind-income-from-house-property.htm&isdlg=1&path=/documents/left+menu/ind-income-from-house-property.htm&isdlg=1#fn2

Naveen (student) (324 Points)
Replied 08 March 2021

Hii Sandeep. Thanks for responding..

There is an argument that for 80C, income tax clearly specified that "Repayments of housing loan taken from Banks or Financial institutions". But like that nothing is mentioned in 24b. They just said "interest payable on borrowed capital".

Plse refer this and share ur opinion

https://cleartax.in/s/home-loan-taken-from-friends-or-relatives#:~:text=Interest%20repayment%20for%20a%20home,is%20taken%20from%20specified%20banks.

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