Dedeuction u/s24(b)

This query is : Resolved

ravikanth (Querist)
Follow

08 January 2009 My Client has availed a Personal Loan from bank during the financial year 07-08. He purchased a house property from the personal loan and rent receipts were made. He paid interest on the personal loan received from the bank.

Can he claim interest paid on personal loan received for the purchase of house property u/s 24(b) of the IT Act. interest on borrowed capital on personal loan from bank.

K V Subba Rao

K V Subba Rao (Expert)
Follow

08 January 2009 Yes.

Assessee should be able to prove, if called to do so, that he has spent Personal Loan amount for purchase of house property