What is the policy of taking a loan from non relative

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 December 2011 What is the policy of taking a loan from non relative for buying a home?

How to pay it back means cash or cheque?

Can it be paid immediately or not? if yes, would there be a possibility of income tax scrutiny?

Please reply ASAP

CA S P BHATNAGAR

CA S P BHATNAGAR (Expert)
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15 December 2011 YOU CAN TAKE LOAN FROM NON RELATIVE FOR BUYING A HOME BUT YOU WILL NOT GET ANY TAX BENEFIT IN SUCH CASE.YOU CAN AVAIL BENEFIT UNDER SECTION 80C AND 24 ONLY IF YOU TAKE LOAN FROM ANY FINANCIAL INSTITUTION.IF YOU WANT TO PAY HOME LOAN TAKEN FROM NON RELATIVE YOU MUST PAY IT BY CHEQUE.