Rakesh (CA) (72 Points)
20 May 2011Hi All,
I am having one query with regards to deduction u/s 24 and 80C.
Is it necessary to take loan in the category of housing loan to claim the deductions under these sections . If i take personal loan from any bank/financial institution and utlise that loan for purchase of house property. will i be eligible to claim deduction under the above mentioned sections. What documentary prood will needs to be submitted to the employer as under the personal loan no interest certificate is issued .
Harpreet
(* * * * * *)
(1670 Points)
Replied 20 May 2011
Both are different kind of loan, you can not consider personal loan as home loan as deduction either you have taken the same for buying the home.
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 20 May 2011
Sec- 24(b) just say that where the property has been acquired , constructed, repaired, renewed or reconstructed with BORROWED CAPITAL then the int. is dedcutible ( after appl. of provisions for sec. 23 and sec. 22)
About Sec. 80C says HP loan taken from recognised institute and not from a private sources..
Act doesnt say the type of loan so i believe PL also includes...
CA. Arpita Singhal
(Partner)
(100 Points)
Replied 20 May 2011
Personal loan is not entitled for claiming ded. U/s 80C.
Only house loan installment & int are eligible for deduction u/s 80C & 24.
No benefit in Incme TAx on taking personal Loan.
CA Amit Agrawal
(Chartered Accountent)
(73 Points)
Replied 20 May 2011
Yes Interest and Instollment of PL can be claimed for deduction U/s 80C & 24 for deduction..
only you have to establish before ITO that PL has been utilised for the construction or purchase of House...
Becouse for 80C you have to establish that " Any paymemt towards cost of purchase /construction of residencial prop including repayment of loan taken from Govt, bank, cooprative bank, LIC, national housinh Bank,, assessee's employerbeing public company/cooprative society"
Thus 80C can be claimed against PL
& Sec 24 reffers about Interest against BORROWED CAPITAL
thus Sec 24 can be envoke for Pl...
CA. Arpita Singhal
(Partner)
(100 Points)
Replied 20 May 2011
| Originally posted by : CA. Arpita Singhal | ||
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Personal loan is not entitled for claiming ded. U/s 80C. Only house loan installment & int are eligible for deduction u/s 80C & 24. No benefit in Incme TAx on taking personal Loan. |
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on reconfirming what i get is interest portion can b allowed u/s 24 but i still think 80C deduction should not b allowed.
80 C says repayment of housing loan....not repayment of loan taken for...
CA Amit Agrawal
(Chartered Accountent)
(73 Points)
Replied 20 May 2011
| Originally posted by : CA Amit Agrawal | ||
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But for the purpose of 80C act says...."Any paymemt towards cost of purchase /construction of residencial prop including repayment of loan taken from Govt, bank ........... |
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and thus 80C can be invoked and I won a case from ITo and made available 80C to my client............
CA. Arpita Singhal
(Partner)
(100 Points)
Replied 20 May 2011
| Originally posted by : CA Amit Agrawal | ||
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Originally posted by : CA Amit Agrawal But for the purpose of 80C act says...."Any paymemt towards cost of purchase /construction of residencial prop including repayment of loan taken from Govt, bank ........... and thus 80C can be invoked and I won a case from ITo and made available 80C to my client............ |
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When u have won a case on this point then there is no issue.
But i still feel that the ITO may not allow a personal loan taken fo rpurchase of house straight forward. If u enter in litigation u can win.
CA Amit Agrawal
(Chartered Accountent)
(73 Points)
Replied 21 May 2011
| Originally posted by : CA Amit Agrawal | ||
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on this ground u can invoke 80C against repayment of PL which has been utilised for the construction or purchase of residencial house.... |
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Rakesh
(CA)
(72 Points)
Replied 23 May 2011
Hi All,
But the main problem is, will my employer be able to accept it, as in case of personal loan no interest and repayment of principal certificate is issued.
Rakesh
(CA)
(72 Points)
Replied 23 May 2011
Hi,
undersec 80c it states that repayment of amount borrowed, it no wherestates that reoayment of housing loan and sec 24 also states the same,so i think i can claim both sec 24 and 80C
TARUN
(ARTICLE ASSISTANT)
(40 Points)
Replied 07 September 2011
ALL OF ABOVE R CORRECT... AS PER ME......... U CAN CLAIM THE DEDUCTION of interst paid on housing loan U/S 24 (b) .... nd claim the deduction of principal payment of loan u/s 80(c).......
regards
TARUN GUPTA
CA Hardik Bunha
(self)
(2121 Points)
Replied 07 September 2011
HA HA HA HA
I CAN SEE WHERE THE FUTURE OF INDIA IS GOING FROM THE ABOVE POSTS.......
TO,
ALL MY FRIENDS
(who posted its answers)
PLEASE UNDERSTAND THE QUESTION THEN GIVE YOUR ANSWER.............ACT IS NOT ABOUT U WANT TO INTERPRET BUT WE SALUTE TO ACT TO BREAK IN RIGHT MANNER............
HERE THE ASSESSEE WILL NOT ELIGIBLE TO CLAIM INTEREST U/S 24 AND NOT ELIGIBLE FOR DEDUCTION U/S 80C.
REASONS:::
(1)THE ASSESSEE HAVE NOT CERTIFICATE FOR INTEREST.
(2)IF LOAN IS TAKEN FROM FINANCIAL INSTITUTION OR GOVT. THEN IT IS ALLOWED.
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 07 September 2011
@ hardik-
The same thing i have said i believe., but in simpler language....
Without using the JARGON`s..
CAclubindia
