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personal loan interest exemption

Others 403 views 5 replies

M/s Chetia and Son's Enterpris

12 Points Posted on 11 August 2019

Respected sir/ Madam
please let me know.
I have taken a personal loan from bank for construction of my house, Can I claim exemption for the interest paid. I have bills of goods purchased for construction of building.

Replies (5)

mohit ganatra

53 Points Posted on 11 August 2019

It is a personal loan so you will not get any exemption of interest paid.
in case where bank provides you certificate that the interest is debited for construction for house you can get the exemption.

Rohika PS

student

268 Points Posted on 11 August 2019

During the construction of the houseproperty you cannot claim any interest u/s 24 IFHP

rama krishnan

12244 Points Posted on 11 August 2019

if you have proof that the personal loan is utilized for the purpose of construction of house property, then it can be claimed but you can't claim principal repayment under 80c

Kapadia Pravin

17264 Points Posted on 11 August 2019

it's a personal loan so no bank will be able to give an interest certificate for particular use of the loan and its interest

PARUL YADAV

finance expet

93 Points Posted on 03 July 2024

Personal loan interest exemption does not apply as per the current income tax laws in India. However, you can claim tax benefits if the personal loan is used for specific purposes like home renovation, business, or education. For example, if you take a personal loan from Kotak Mahindra Bank for home renovation, the interest paid can be claimed under Section 24(b) of the Income Tax Act as a deduction up to ₹2 lakh. It's essential to maintain proper documentation to avail these benefits and consult with a tax advisor for accurate guidance.