Section 24(b)

This query is : Resolved

arvind (Querist)
Follow

03 August 2016 I took possession of my flat in 2004 after availing a housing loan from ICICI Bank and start claiming deduction of interest under income from house property. In Feb, 2008, I availed another loan under an written agreement from my relative for repairs & renovation of this flat. I started claiming both the interests paid to ICICI Bank & relative under section 24(b) as I understand both these loans fall under "housing Loan". However, recently assessing authority for AY 2009-10, who is reluctant to give benefit of loan from relative has put onus on me to bring any decided case law in this regard else i may have to forfeit my small refund rather face a demand notice. If anybody can help me in this regard ! - Arvind Gupta (arvindlily@gmail.com)

Rohit A Kadam

Rohit A Kadam (Expert)
Follow

03 August 2016 As far as I know, there is no such restriction under section 24(b) of the IT Act for claiming tax benefit on interest component of the housing loan. You should however furnishe a certificate from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by you.

arvind

arvind (Querist)
Follow

03 August 2016 Thanks Mr Rohit. I did explained to AA the same thing. However, If you have any case laws on this subject that will help him to clear the case.

Upgrade to CAclubindia Pro. Subscribe Now!

Rohit A Kadam

Rohit A Kadam (Expert)
Follow

04 August 2016 Hi Arvind, I found a case law where the assessee took a loan from his wife and was allowed deduction u/s 24(b)

Prem Chadha vs ITO 92 TTJ 69 (Del 'I')

Read more at: https://indiankanoon.org/doc/957626/

arvind

arvind (Querist)
Follow

05 August 2016 Thank You, Kadam, It will be helpful in dealing with AA in person. Thanks once again.