Regarding loan

This query is : Resolved

urvi mehta (Querist)
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26 December 2011 Hello
I am a IT engineer.
I want to take loan to repair my 20 yr old house.
Can I get exemption for this loan?
and Can i get home loan for this?

Krishna Mohan

Krishna Mohan (Expert)
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26 December 2011 To claim exemption for the loan taken or to be taken, there should be some new asset created. In your case, if the loan is only for purpose of repairs which does not add any value, you cannot take any deduction. However, if the loan is for some capital asset accumulation like construction of additional floor, then you can claim the interest and principal deduction as per IT Act. Getting home loan is as per the discretion of the respective banks or financial institution.