Deduction u/s 24

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Naitik (Querist)
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05 March 2014 I have taken the loan from the bank to purchase the house. I am regular in making the payment of interest and principle to the bank. I also claim interest deduction u/s 24 of I. T. Act, 1961. Now if I borrow loan from wife and make the repayment of loan to the bank, whether I would be eligible to claim interest payable to my wife u/s 24 of I. T. Act, 1961? Circular No. 08/2013 of 10th October explains that "In case a new loan is taken to repay the earlier loan, then the certificate should also show the details of Principle and Interest of the loan so repaid."

Nikhil Kaushik

Nikhil Kaushik (Expert)
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05 March 2014 well that certificate you will get from the bank on closure of loan. with regards to tax deduction on interest paid to wife, yes it is deductible under 24(b).