Expert Please help.
Whether interest on loan taken from relative is claimed as deduction u/s 24(b) of Income tax act 1961, under the head income from house property. Whether interest claimed will be disallowed if the property for which deduction is claimed is sold within 2 years of purchase of the property. Whether principal repayment will be considered as income if property is sold within 2 years from the date of purchase. Please provide the case laws also if possible.
Yes, loan can be taken from any one. Relatives are ok for loan.
Sec 24 dont say any thing about sale before 24 months etc so one can sell any time.
| Originally posted by : HARPREET SINGH | ||
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Yes, loan can be taken from any one. Relatives are ok for loan. Sec 24 dont say any thing about sale before 24 months etc so one can sell any time. |
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Dear Harpreet Sir,
What about the principal repayment, whether it is deductible u/s 80C if loan is taken from relatives.
what are the consequences if the loan is taken from bank/FI/employer & house property is sold within 2 years of purchase.
You are correct. As per 80C, relatives are not allowed. No deduction would be permissable.
I never seen 24 months condition in Sec 80C as well 24. I think you can sell property within 24 months too.
Thanks
Harpreet
CAclubindia
