Tax adjustment of soft home loan by employer

who advised you to change to soft loan when the act clearly mentions that interest and principal repayment of home loans are allowed only in case of Housing Loans taken from banks or FII..

You are totally ineligible for the deductions and your employer is absolutely right.

Ankit

I would disagree with you partially.

Interest paid on loan taken from any person , ie , other than from Bank/FI is allowed as deduction in income computation. Only principal is not available for investment/deduction under section 80C.

Hence, this is to be considered for calculation of TDS by employer under section 192.

The tax payer has to furnish a certificate to the employer disclosing the interest paid and identity of loan giver.

Let me know your considered observation on this.

Regards,

Thank you for the response. I read this that i can take a soft loan and pey interest on the same and claim tax deduction for the same. My post is to confirm the same.

I would like to know your openion on the other queries, ie 2,3,and 4.

Thanks in advance.