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Interest paid on mortgage loan for renovation of building

Tax queries 221 views 1 replies

Sir,

We had to take loan against mortgage for renovation/repair of building rented out. My query is are we not entitled to deductions on interest paying on such mortgage amount since mortgage is a registered one and amount is substantial so the interest is in lakhs pm.

An early guidance sought from the learned experts. 

Regards 

Replies (1)
If the loan is used for home purpose you will definitely get the benefit u/s 24. It is the end use of loan that matters and not the source of loan. It does not matter if it is not named as home loan. But since its a general purpose loan you must keep the documents and other details in proper manner to substantiate your claim that the loan was indeed used for home purpose only.


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