Deduction u/s 24 - intrest on borrowings

This query is : Resolved

Mahip Sandal (Querist)
Follow

09 December 2008 # Pl clarify if interest on borrowings, other than specific housing loans, like personal loans used for repairs of own house are eligible for deduction as property loss ( self occupied property) u/s 24
# If yes, can it be taken in account by the DDO/Employer
# If yes, can Audit ask for proof other than documents/statements as listed for submissions to the DDO/employer at the time of TDS - or disallow it and ask for return/refund?

K V Subba Rao

K V Subba Rao (Expert)
Follow

09 December 2008 Yes. Interest on Borrowings for Repairs is allowable upto Rs 30000.

With regard to considering Interest on Borrowings from other than specified sources such as Banks etc., by the Employer, I suggest you visit http://www.taxworry.com/2007/07/is-deduction-of-interest-on-loan.html.

Undoubtedly, Employer has authority to ask Employee to produce evidence to full satisfaction of the Employer

However, I personally feel Employer should desist from taking note of such Interest expenditure for obvious reasons