Dear All
1.Can we claim Interest on loan even if not actually paid but due.
for ex-In case of Housing Loan Interest was due but not paid
5 Replies
Naveen
(student)
(334 Points)
Replied 04 March 2021
Yes. Interest is allowed on due basis. i.e paid or accrued both are allowed
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 05 March 2021
Yes, deduction for interest on housing loan u/s 24b allowed under accrual basis even if not paid. The payment condition is for principal repayment of housing loan which is allowed only on payment basis u/s 80C.
Regards,
Manoj
Himanshu Agarwal
(Proprietor)
(186 Points)
Replied 05 March 2021
Thanks..wat about business loan or personal loan
Naveen
(student)
(334 Points)
Replied 05 March 2021
U can't claim interest on business or personal loan in ur ITR. In case, if u r having any business income u can claim interest on business loan only if it is paid. Accrual like home loan is not allowed. Personal loan can't be claimed anywhere. But sometimes people will claim personal loan interest also by saying that they used it for business. It's debatable.
Crux is unlike Interest on housing loan, interest on other loans can be claimed only if they are paid. There is no accrual or due concept for them
Crux is unlike Interest on housing loan, interest on other loans can be claimed only if they are paid. There is no accrual or due concept for them
Kapadia Pravin
(17259 Points)
Replied 05 March 2021
In case of housing loan, interest accrued due but not paid is allowable deduction.
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