12 March 2009
My doubt in relation with Intt on borrowed capital for purchase of house (self occupied property). Whether deduction will be allowed, if assessee pay the interest to the individual (being loan taken for purchase of self occupied property)? please solve my query with reference to the provision of the section 24 (b) and section 80C.
12 March 2009
Hi Tirth, Thanks for the reply. So in that case, assessee has an option of Tax Planning. He can take loan from the spouse, or from any other person (whoes income is under the limit) by cash/ by chaque, by whatever means and paid intt to her/him by prevelling market rate. Wheather Asseesing Officer has power to disallowed this transaction (even if assessee furnish the Loan Certificate).
Please let me know any case law on this issue (if any).
CAclubindia
