House loan

Yes , write down on plain paper all details loan and interest and ask for deduction,

you need to take interest and principle deduction certificate from relative in format specified like bank  I think so

I am not sure about certificate part But yes you can ask for deduction.

As per the provision of section 80c(2)(xviii)(c) the deduction on account of repayment of principal on housing loan can be availed only if the loan is taken from any Financial Institution or from Central Govt.  The relevant above stated section is being  reproduced below:

                (xviii)     for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

(c) repayment of the amount borrowed by the assessee from—

      (1)  the Central Government or any State Government, or

      (2)  any bank, including a co-operative bank, or

      (3)  the Life Insurance Corporation, or

      (4)  the National Housing Bank, or

      (5)  any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

      (6)  any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

      (7)  the assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

      (8)  the assessee’s employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society

 Thus from the above it is clear that if loan is taken from an relative then no deduction on account of payment of Interest & repayment of principal can be availed by the assessee.

Q- 4 plan to buy a house by raising loans from friends and relatives. Will I be eligible for tax benefit from all sources?

Ans: – Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.

3. Loan taken from Friends and Family is eligible for Deductions (Interest)

Incase you want to take loan from your friends , parents or any other person , you can still claim the interest on the loan under sec 24 , which is upto 1.5 lacs per year . However you can not claim the principal amount under sec 80C, that’s applicable only if you take up the loan from some Bank or financial institution . So you don’t always need to take the loan from Bank. if you can take it from a friend or Family , you can still claim tax deductions on Interest part .

 https://taxguru.in/i ncome-tax/faq-on-housing-loan-and-income-tax-benefit.html

https://www.jagoinvestor.com/2011/02/4-home-loan-facts.html

Principal = No But Interest = Yes

No. your are not supposed to claim the deduction for payments made to friends and realtives for home laon