25 December 2007
I have taken a housing loan from bank of India for 20 years at 10.5% interest rate. Now I want to take a loan from my father and repay my loan to Bank of India. Can I pay interest to my father @15% and claim loss from house property.
25 December 2007
THERE IS NO BAR FOR a loan fro father AS PER SEC 24 OF IT ACT . CLAUSE (b) of sec 24 says the amount of any interest payable is allowed as deduction and only a certificate from the person to whom interest is payable on capital borrowed has to be furnished.even INTEREST ON A new loan( BORROROWED for paying old loan) is allowed under sec 24. R.V.RAO
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