Deduction u/s 24b of house property

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NEHA AGARWAL (Querist)
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11 April 2013 My doubt is that if I take a loan for purchasing a house from a friend/relative or against FD from a bank, can I claim deduction u/s 24b of the interest amount on such loan?

CA. PIYUSH GOEL

CA. PIYUSH GOEL (Expert)
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11 April 2013 dear neha..

sec 24 says that if you construct/acquire a house property from borrowed funds you can take befit of interest for Rs. 30000/150000 as the case may be, irrespective of the source from where you have borrowed funds..

difference b/w funds borrowed from bank and relative /friend is matters u/s 80C on repayment of loan..

because benefit of loan repayment to bank / financial institutions gets eligible to be deducted not repayment to friend/relative...

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