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???
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Rate of interest of borrowed capital
Replies (5)
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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