interest paid on housing loan

Tax queries 680 views 1 replies

Nidhi Mehta

30 Points Joined November 2009

What will happen if loan is taken outside india and later if he becomes resident in india,if he pays interest now to a non-resident,will he be required to deduct tax???

Replies (1)

Guest

Dear Nidhi,

Any Interest chargeable in the hands of receipent and payable Out of India, is liable to Deduct Tax . If tax is not deducted and if there is no person who may be treated as an agent , By virtue of Sec.25 Such interest on housing loan is not deductable in computing income chargeable under the head " Income from House Property."