TDS U/s 192

TDS 502 views 2 replies

satish

28 Points Joined March 2009

Hi, I have a housing loan from bank (70%) and relatives and friends (30%). I bought the apartment with the above finance option. I have sumbitted the interest detials on the above loan to my employer in the declaration form. Now they say interest to individuals , relaitves and friends would not be considered for TDS purposes. Is this right? Can employer do so U/s 192 r.w. the salary circular

Replies (2)

Harpreet

* * * * * *

1670 Points Joined March 2008

Repayment of Home Loan and its Principal amount is eligible for deduction u/s 80c and Interest part for deduction as a negative income from house property provided home loan taken from recognized financial institution or banks either govt, semi govt and non-govt (private). Loan taken from relative for the purpose of home loan is not eligible for deduction in your income tax declaration/planning.

Aditya Maheshwari

CA in Practice

35867 Points Joined June 2009

For interest deduction u/s 24(b) certificate from person from whom loan is taken and the person can be any person.

For principal deduction u/s 80C the loan must be taken from bank or a financial institution. So deduction for interest allowable totally but principal only from banks.

Read the section. It itself says any person for interest deduction. However certificate required.