In respect of interest on housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2010 In case, deduction of Interest on housing loan under HOUSE PROPERTY INCOME, whether loan must be taken from a Bank or any financial institution? Whether a assessee can claim deduction of interest on unsecured loan taken from relatives?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 January 2010 Deduction under section 24(b) can be claimed for the interest payable on loan taken irrespective of the status of the lender subject to the satisfaction of other conditions mentioned in the section.

K V Subba Rao

K V Subba Rao (Expert)
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20 January 2010 Rule position quoted by Sri Warrier is correct.

I suggest from my own experience---

Take loan by way of cheque or demand draft, that is, thro banking channel.

Collect and keep ready one letter confirming payment to you in the form of loan

Note that Lender has to include Interest in his (Lender) Return of Income

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Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2010 Thank you very much for solving this query.