Housing loan from father

This query is : Resolved

SHAH ATUL (Querist)
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17 March 2009 My father wants to give a housing loan by cheque with a interest of 10 % .

If pay him quarterly interest and loan instalment can i get deduction from salary u/s 80C as a loan repayment and interest u/s 24 as loan interest payment up to Rs.1,50,000.

He will issue aletter to me and i accept the terms and condition.

what is the other way to get the loan.

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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17 March 2009 Yes, but make sure about all declaration.

K V Subba Rao

K V Subba Rao (Expert)
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17 March 2009 In your father's letter, he has to mention source of funds like retirement benefit etc. A simple letter is sufficient

Sec 80C Deduction cannot be claimed

Make sure that you receive payments (towards) loan by cheque only

You can claim interest u/s 24 but he has to include it his (father) return

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