PrAsHaNt (working in ca firm ) (126 Points)
12 June 2010hey frnds, i saw in many of salaried returns that ass/ca r trying to claim 'interest on loan other than bank (for construct home)' . can it is possible.???????? as i know it is nt allowded,.... can u focus me whts the matter is this,,,,????????? pls comment,,,,
Bhavik Davda
(Proprietor)
(238 Points)
Replied 12 June 2010
Loan amt. has to be paid to financial institution.... gross negligence if claiming dedcution for making payment to to other then Financial Institution.
Bhavik ( www.vaibham.com )
Sonam Seth Khanduja
(Chartered Accountant)
(112 Points)
Replied 12 June 2010
According to my knowledge it can be claimed. It has nothing to do with the status of lender.
If one can get deduction of the interest paid on the house purchased on installments then it is also possible.
Please check out section 24(b) . if any mistake then kindly share it .
Kumar
(Article)
(922 Points)
Replied 13 June 2010
Deduction U/s 24 (b) is on interest on loan.
From whom it is not mentioned , so according to my knowledge the deduction can be claimed.
Wait foe views of other learned members....
CA.Satyaranjan Jena
(Service)
(266 Points)
Replied 13 June 2010
Sec 24(b) says interest on borrowed capital is allowable as deduction if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property.
The above section makes it clear that money can be borrowed from anyone but you have to keep sufficient document for the proof.
deepak K Gujrati
(CA-practice)
(966 Points)
Replied 16 June 2010
Yes Interest paid on loan taken for purchase or construction of house property can be claimed as an expenditure.
CAclubindia
