ramesh (Accountant) (261 Points)
06 September 2021Personal loan taken for construction purpose from a bank. Principle repayment th eligible for sec 80c deduction? Any conditions to claim
JGM
(Knowledge Sharer)
(443 Points)
Replied 06 September 2021
You can claim deduction under section 80C in respect of principal repayment so long you are able substantiate that the borrowed funds were utilised for the purpose of acquiring / constructing the property.
ramesh
(Accountant)
(261 Points)
Replied 06 September 2021
Retired government teacher constructed house with his retirement funds. At the finishing of the constitution he fell short of funds so he took 9 lakhs personal loan from SBI where he is having pension account. How can he prove that ...we won't expect a letter or something else from the Banker ...
JGM
(Knowledge Sharer)
(443 Points)
Replied 07 September 2021
Assessee can consider maintaining fund flow statement showing one-to-one utilisation of funds for the purpose of construction.
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