Loan from a relative abroad

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Rakesh Gopalani

Consultant

23 Points Posted on 11 May 2015

Am currently planning to buy a property. Since my eligibility is not meeting the desired benchmark, i intend borrowing money from a relative abroad to include it as 'own contribution' for home loan purposes.

My Profile:

Salaried

My query:

1. Can it be borrowed from my mom's real sister(masi) as a source?

2. Will it be taxed?

3. Can the repayment happen over a longer tenure (more than 1 year)?

Replies (3)

Sonakshi Mangla

Employee

238 Points Posted on 12 May 2015

yes you can borrow loan..... no tax on borrowings & it can be paid over n number of period... but u wont be able to claim any deduction u/s 24 for interest paid to relative in case of loan for H.P... but yes principal component can be claimed as a deduction u/s 80C.....

Rakesh Gopalani

Consultant

23 Points Posted on 13 May 2015

Can i also borrow it from a cousin brother?

Guest

Posted on 13 May 2015

For borrowing, there is no restriction that the person has to be a relative. Just make sure that you are borrowing and repaying through proper banking channels and not in cash.

As per my knowlegde, if you take loan from a relative you can get interest deduction u/s 24(b) if he gives you a certificate but NOT 80C deduction for principal repayment.