Hi
One of my clients is taking a personal loan and is asking if any Tax Deduction would be allowed for Personal Loans.
He says he will take the personal loan and invest it exclusively in
- Buying Real Estate, or
- Invest in Business
Menu
Tax deductions for personal loans
Replies (2)
For housing loan u will get deduction of interest u/s 24B and for principal amount deduction will be allowed under section 80C
@ Neha as your question is vague
If you are asking whether your client is required to deduct TDS then its answer depends on whether loan is taken from banking co. or NBFC in case of NBFC answer is yes
If you are asking whether your client can claim TDS as deduction then answer is no as TDS is not an exp.
If you are asking whether interest or other exp. on loan is allowed then answer is yes if it is invested for buying personal house property then yes principal payment is allowed as per sec. 80c and under head income from other sources interest is allowed and if it expended to buy any assets related to business, Exp. is allowed after such asset is put to use. otherwise interest will be capitalised.
hope it helps you
Recent Threads
- Request For Dhirajlal Rambhia
- Tds deduction queery
- Check ITR1 on income tax Form ITR1 Instead of 1 ho
- Form 121 requirement
- Interest on reversal of ITC when ITC balance avail
- Is MirrorFly an Instant Messaging Software?
- ITR filling for legal heir
- How Can I qualify CA Final Exam?
- Wrong reporting on 22 april 2026 under article inc
- Articeship Form 107
Related Threads
CAclubindia
