finance expet
93 Points
Joined May 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.