Any one can tell me what would be the maximum rate of interest for the money borrowed from a relative for the construction or acquisition purpose? as there is no limit on deduction of interest on borrowed capital for construction/ acquisition on the property let out, whether the capital can be borrowed from a relative having income less than maximum exemption limit for tax planning purpose???
Hi, yes in my opinion you will definitely get the deduction of interest part under the head the income from house property u/s24(b) as there is no condition from which to be borrowed , but you need to take care of that you will not get the deduction u/s80c of the principle amount as there condition has been laid .
You can claim deduction u/s 24(b).
claim deduction u/s 24(b)
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Gourav: well i have not seen anywhere in the act the rate of interest...is it 12%???
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