Iam an individual.I have taken loan from my friend to construct a house and paid interest by cash.can i claim this interst as a deduction while calculating income from house property.If i repay the principle amount, can i get 80c deduction.If available what proofs should i attach to the return .
26 December 2010
You may face other problems also. As you have taken loan from your friend for construction I think this loan will be more than Rs 20000/-. As you are paying interest in cash I guess that you might have taken this loan in cash.
Loans taken in cash and repaid in cash exceeding Rs 20000/ are not allowed and are subject to penalty. It's advisable to forget 80C or 24.
CAclubindia
