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
hi,
Deduction u/s 24 can be claimed but deduction u/s 80C will not be available.......
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 | ||
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YES HE CAN GET DEDUCTION U/S 24 FOR PAYMENT OF INTEREST AND U/S 80C FOR PAYMENT OF PRICIPLE |
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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.
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. | |||||||||
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....
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