Loan taken interest free from parents and relatives

This query is : Resolved

CA.Vinita Gupta (Querist)
Follow

21 November 2011 An assessee has taken Loan from Relatives and Parents to buy a house. What are the kinds of deduction benefitsbe taken under the Income tax 1961?

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
Follow

21 November 2011 Why Deduction Required.
No Interest paid.
No Any Income.
No Expenses.

Kapil Gupta

Kapil Gupta (Expert)
Follow

22 November 2011 Deduction is allowed only if the payment are made to public financial institutions.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

CA CS CMA Sanjay Kumar Sareen

CA CS CMA Sanjay Kumar Sareen (Expert)
Follow

22 November 2011 WHERE HOUSE PROPERTY IS BOUGHT AGAINST THE LOAN.SECTION 24(B)DEDUCTION IE., INTEREST ON CAPITAL BORROWED IS AVAILABLE.

IN THE PRESENT CASE IT IS INTEREST FREE LOAN HENCE NOT ENTITLED FOR ANY DEDUCTION UNDER SECTION 24(B).

Message likes : 1 times