Deduction of INTREST on house loan is available under section 24 and section 24 does not prescribe any condition that the loan should be from any bank or financial institution therefore interest payment on house loan taken from individual can be claimed under section 24.
PROVIDED interest payment certificate is received from lender.
Further principal repayment of house loan is available under section 80C , and which will not be available if loan is not from bank or notified financial institution .
Therefore if house loan is taken from individual deduction of only interest payment will be available and not of principal repayment.
As long as you have a valid loan agreement and proof of payment of EMI ( bank statment ) ensuring genuiness of the transanction , interest will not be disallowed.
not required to show nature of loan.
2. interest rate
loan from bank : whatever interest rate you are paying .
loan from individual : interest rate as per agrement but it should be genuine ( nominal).
since 80c can't be claimed . i dont't think anyone will prefer loan from individual as a taxplanning .
ya i think nominal rate is a reasonal interpretation as nothing is mentioned .
| Originally posted by : Ankit Taprania | ||
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Deduction of INTREST on house loan is available under section 24 and section 24 does not prescribe any condition that the loan should be from any bank or financial institution therefore interest payment on house loan taken from individual can be claimed under section 24. PROVIDED interest payment certificate is received from lender. Further principal repayment of house loan is available under section 80C , and which will not be available if loan is not from bank or notified financial institution . Therefore if house loan is taken from individual deduction of only interest payment will be available and not of principal repayment. |
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