tax planning of salaried employees

Tax planning 1908 views 2 replies

geetanshu bhalla

student

246 Points Posted on 29 January 2011

my friend's salary is rs500000 p.a..he invested rs100000 and rs20000 respectively u/s 80c &80ccf.he also take a house loan of rs400000 for construction of his house (not as per building bylaws) from his mother in law.his mother in law has no pan card .is he avail deduction u/s 24b of it act,1961

Replies (2)

U S Sharma

glidor@gmail.com

21068 Points Posted on 30 January 2011

Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.

M .K. Jha

CA Final

484 Points Posted on 31 January 2011

Originally posted by : U S Sharma
	Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.