I am borrowing loan for construction from my uncle at interest.
can I claim interest on housing loan in computation of income?
Experts please advise
Interest repayment for a home loan that is taken from friends or relatives can be claimed as a deduction under section 24. The deduction can only be claimed when the construction of the house is complete or the possession is received by the individual.The income tax act does not specify clearly that deduction will be available only for loans from specified banks.
On the other hand repayment of the principal on a home loan borrowed from friends or relatives can’t be claimed as a deduction under this section.
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