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It rule clarification for u/s 24(b)

Tax queries 319 views 3 replies

Amit

25 Points Joined August 2014

Hi,

To avail deduction for interest paid towards home loan(self occupied property), IT rule doesn't mention who can be lender.

1)Can you please clarify if Spouse can be lender for lending sum to replay existing home loan with institution e.g. ICICI. HDFc etc.

2) if yes, what certificate(format) has to be issued by lender(spouse).

3) How lender(spouse) will be taxed for income earned as interest.

Thanks,

Replies (3)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

1. yes, spouse can be lender of loan...... 2. certificate for repayment of intt and principal portion of loan is required to be given by lender....... 3. intt on loan received will be taxable under the head other sources.

Amit

25 Points Joined August 2014

1) Is there any particular format of certificate, which must be used.

A very specific scenario.

Propoerty is co-wned by couple and funded by bank. Can spouse lend money for other partner share to close existing loan. Any rule on what interest can be charged by spouse to lend money to close existing loan.

Thanks.