Hello Everbody,
my case is such that I have aquired a property 4 years back by taking a loan from my relative and i have not yet repaid the loan, now i have taken a housing loan from bank on this property and have use that money to repay the earlier loan taken from the relative, I am confused whether I can claim interest paid to the bank on housing loan in income from house property
A. Loan asked from a relative is not deductible. Interest on such loan, if any, is also not deductible.
B. Loan taken to repay "such loan" can't be considered as home loan.
C. Loan taken to repay any other loan, cannot be considered as loan taken for the primary purpose.
D. Interest in ur case too is not deductible
Hai dhiraj can u tell me the section or case laws regarding loan taken from relative and interest on such is not deductible
Helo Dhiraj Sir,
I am not areed with u becos the sec 24(b) of the Act says that from when ever u take the loan
for the purpose of aquisition, for construction, repais of house etc. & paid the interest thereon is allowed as deduction.
And the 2nd issued is that interest paid on for taking the loan to repaid the previouse loan is also deductableu/s 24 (b) .
Kaushal Rawal is absolutely correct and Dhiraj is totally wrong.
1) Housing loan interest paid to relative will be allowed as deduction us 24b.
2) If Loan taken to repay original loan then interest on new loan will be allowed as deduction.
Nothing in act specify that u must take hp loan from financial institution only for claiming deduction us 24b.
agree with kushal
u can claim the deduction u/s 24 (B)
I agree that the int on loan from relative is deductible. Also, you can take a loan to repay an earlier loan and continue to get the deduction for int on the new loan. Only, one point I would like to add.
Compound Int or penal int are not deductible. If you have used the new loan to repay the Interest or Penal Int, the int on that portion of the loan utilised for the said purpose is not deductible.
I m agree with Dhiraj
Housing Loan can be provided only by Housing finance institution or bank who are eligible to provide this loan. And no one can morgaged the property without holding the licence of loan agaist property from Central Govt. and also only financial institute can provide the interest certificate.
| Originally posted by : varun gupta | ||
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Kaushal Rawal is absolutely correct and Dhiraj is totally wrong. 1) Housing loan interest paid to relative will be allowed as deduction us 24b. 2) If Loan taken to repay original loan then interest on new loan will be allowed as deduction. Nothing in act specify that u must take hp loan from financial institution only for claiming deduction us 24b. |
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Hi Lovenish
Ist how will u justify that loan taken taken from relative are Home loan
2nd as i expalined before only licence holding co. can provide the Home loan for purchasing the
loan and morgage ur property
3rd this is practicle logical and don't go with theory only. If u dont delive pls. try once practicly
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