u/s24 as well as u/s 80C ?

1203 views 18 replies

Mr.X has taken loan from his friend for construction of house property

 

Can he claim deduction u/s24 as well as u/s 80C ?

 

Thanks in advance

Replies (18)

hi,

Deduction u/s 24 can be claimed but deduction u/s 80C will not be available.......

Why ?

YES HE CAN GET DEDUCTION U/S 24 FOR PAYMENT OF INTEREST AND U/S 80C FOR PAYMENT OF PRICIPLE

hi Priya,

              Payment to relatives is not deductible under sec.8oc. In that section, they have given a list of institutions. When payments are made to those insti deuction can be claimed(say.central govt. or state govt.). however, relatives are not in that list. hence, deduction cannot be claimed

 

Originally posted by : Manoj Tilokani

YES HE CAN GET DEDUCTION U/S 24 FOR PAYMENT OF INTEREST AND U/S 80C FOR PAYMENT OF PRICIPLE

 SORRY I GOT WRONG ABOVE. MR MUKUND IS RIGHT. 80C IS NOT ALLOWED

No problem manoj any way u have got good point...

If loan is borrowed from relatives and friends , interest can be deducted u/s 24 of the I T Act . However , you can not claim deduction u/s 80C.

There is no bar in the I T Act , as far as section 24 is concerned , that loan should be borrowed from banks and financial instution unline section 80C.

ok dear....... ash jain

AN ASSESSE CAN CLAIM DEDUCTION U/S 80C FOR THE REPAYMENT OF THE PRINCIPAL AMOUNT AND FOR THE AMOUNT OF INTEREST U/S 24(b),

For the purpose of claiming deduction u/s 80(c) the assesment of house property under the head of income from house property is a pre requisite  i.e if a house property is not fully constructed in the previous year then deduction u/s 80(c) cannot be availed

THE LOAN SHOULD BE OBTAINED FROM ANY BANK OR FINANCIAL INSTITUTION FOR THE PURPOSE OF CLAIMING DEDUCTION U/S 80(C)

AN ASSESSE CAN CLAIM DEDUCTION U/S 80C FOR THE REPAYMENT OF THE PRINCIPAL AMOUNT AND FOR THE AMOUNT OF INTEREST U/S 24(b),

For the purpose of claiming deduction u/s 80(c) the assesment of house property under the head of income from house property is a pre requisite  i.e if a house property is not fully constructed in the previous year then deduction u/s 80(c) cannot be availed

THE LOAN SHOULD BE OBTAINED FROM ANY BANK OR FINANCIAL INSTITUTION FOR THE PURPOSE OF CLAIMING DEDUCTION U/S 80(C)

Hi 

I am agree wid mr mukund

 

Dear,                  
                   
Interest on loan from any person including family members,friends and relatives is an allowable deduction.
Sec.24 does not require the amount to be borrowed from specified bodies only,    
as in case of deduction u/s.80C(2)(Xviii) on repayment of loan obtained for purchase/construction of house.
                   
Best Regards                
                   
K.Ilayaraja.                

Thanks Mr.Ilayaraja for more clarification

yup...agree wid above answers...


(just for info purposes)
            Infact this point is often used as an effective tax planning tool....one can take a loan from senior citizen for housing purposes and claim deduction for the same....while the senior citizen should not have any major source of income....thus he'll also be not taxed for income from other sources (interest) due to tax slab rate exemption...
But dis can only be done u/s 24 and not under sec 80C...thus the benefit of sec 24...
Kindly correct if i'm wrong....

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
06 July 2026
C.A./CA Inter OR pursuing C.A./GST/Accounts/Audit/IT - Head

Arvindkumar Maniar & Co.

Rajkot

CA

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details