SEC 24 OF THE INCOME TAX ACT

This has reference to the query corner in the Economic times 16th feb 2010.

A question has been asked by a person that he is living on a rental basis and has borrowed a loan from his father, he has asked if he could get Tax benefits for the loan that he has taken from his father.

It has been answered that he would eligible to claim deduction under sec 24.

from the reading of sec 24, i found out that it is an exaustive and has specified for two duductions:-

1. is under sec 24(a) which is std deduction of 30% on the net annual value

2. is under sec 24(b) which is for interest on borrowed capital, if the amount is borrowed for the purpose of construction, repair,renewal or reconstruction of property.

under these provisions; in the instant case a person who is living in a rentel basis, if he borrows money from his father, will he be able to claim deduction of the interst paid under sec 24.

I request some one to clarify, and update me

thanks

karthi