17 September 2008
I HAVE AN HOME LOAN WITH IDBI, FOR WHICH I HAVE DECIDED TO CLOSE MY HOME LOAN. PLS. NOTE THAT I DONT HAVE MONEY BUT BANKERS ARE READY TO ISSUE THE PERSONAL LOAN. I WILL TAKE THE LOAN FOR RS.4.00 THE SAME WILL TRFR. TO MY EXISITNG HOME LOAN. I WANT TO KNOW ANY INCOME TAX HAS TO PAY FOR THIS TRANSACTION. PLS. ADIVCE ME IMMEIDTELY. REGARDS. sudharshan10@rediffmail.com
17 September 2008
No, taking of personal loan and repayment of existing loan will not attract income Tax liability. However, it is not clear that why personal loan is being taken for the repayment of H.Loan. It is suggested that the H.Loan case may be taken over by another banker and you should liasion with other banks. After the takeover, you will continue to have the previlage of deduction of Interest on H.Loan u/s 25 as well deduction for repayment of principal amount u/s 80C of the Income Tax Act.
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