Interest paid on capital assets (Residential Land)

I HAD BUY RESIDENTIAL PLOT OF Rs. 500000, ON WHICH I BORROW FUND FROM MY FRIENDS OF Rs. 200000. Can WE ADD INTEREST PAID AMOUNT TO COST OF MY PLOT OR NOT AS PER INCOME TAX LAWS.

PLEASE ANSWER MY QUESTION AT EARLIEST.

Replies (2)
Quick Summary
This discussion clarifies whether interest paid on a loan taken to purchase residential land can be added to the plot's cost for tax purposes. The consensus is that while you can claim the interest paid on the loan, you cannot claim the principal amount or any additional interest. Crucially, to claim this interest, you must possess a loan certificate detailing the lender's name and PAN number.

Yes, you can add interest

No restrictions
You can take interest
but you can't take principal or additional interest as per new section 80ee
but to claim the above interest you should have the loan certificate with proper name n pan number

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