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Interest subvention

2219 views 1 replies

shruti

240 Points Joined July 2007

my friend received interest subsidy under interest subvention scheme a

bank adjust interest subsidy against loan principal

assessee is individual and interest on housing loan not claimed under 24(b) becoz housei sunder construction

sinterest subsidy is taable or not

Replies (1)

Guest

Intersr subvention means the bank is asked to collect lower interest from the borrowers. the Govt then reimburses the bank. In your friend's case, the bank has first charged full rate of interest to him and then adjusted the balance on receiving it from Govt.

In my view this interest subsidy is not taxable.