U/S 24 (b) Intt on Borrowed Capital

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NiTiN1504 (Querist)
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12 March 2009 My doubt in relation with Intt on borrowed capital for purchase of house (self occupied property).
Whether deduction will be allowed, if assessee pay the interest to the individual (being loan taken for purchase of self occupied property)?
please solve my query with reference to the provision of the section 24 (b) and section 80C.

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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13 March 2009 allAll interest paid shall be allowed to the extend of rs 30000 or rs 150000 as the case may be .
Section 24(b) does not specifies that loan must be taken from specified bank etc.
But remember interest must be of reasonable extend.

u/s 80C only repayment of principle amt of loan is exempted since the term repayment is used in the act is it used only for principle

regards….!