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Int allowed u/s 24b

sagar (mathura) (214 Points)

22 February 2016

I have taken a secured loan of rs 20 lakh from bank for purchasing house against my fixed deposit @ 9%. can I take benefit of rs 20000u/s 24(b) and rs 150000 u/s 80c. as in bank records this is secured loan , not housing loan.

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7 Replies

J P SINGH (Accountant) (67 Points)
Replied 22 February 2016

you are not eligible to claim sec. 24b & sec 80c, as bank certificate is miss

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sagar (mathura) (214 Points)
Replied 22 February 2016

Thanks But is there no other way to handle this situation as I will suffered a huge loss if this deduction will not allowed. I have a proof of payment to seller.

Prateek (Partner) (143 Points)
Replied 22 February 2016

You can claim deduction irrespective of the nature of loan( personal, mortgage, secured, unsecured).

The loan should be used for purpose of purchase, construction or renewal of house.

Therefore you can claim such deduction.

For more information you can visit - https://taxadda.com/income-tax/house-property/deduction-of-interest-sec-24b/

https://taxadda.com/income-tax/deductions/insurance-ppf-repayment-of-loan-and-other-deductions-sec-80c/#housing

Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 22 February 2016

There is no deduction or exemption for Interest on Secured Loan.

sagar (mathura) (214 Points)
Replied 22 February 2016

Mr prateek what about certificate as mentioned in sec 24b. As far as I read it clearly says that no deduction is allowed on interest if certificate from bank not furnished or anybody from whom the assessee borrowed the capital.

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Prateek (Partner) (143 Points)
Replied 22 February 2016

Yes, you need a certificate but its not necessarily needs to be a housing loan. As you said you take loan from bank, you can easily get a certificate.

sagar (mathura) (214 Points)
Replied 22 February 2016

But this is also mentioned in this section that certificate should also Mention that interest is payable is for purpose of acquisition, construction of the house. Will bank provide this kind of certificate with this lines.