section 24(b)
prachi jain (105 Points)
23 July 2019
Is interest paid on loan from other than financial institutions/banks is allowed as deduction in SOP/Let out?
5 Replies
RAJA P M
("Do the Right Thing...!!!")
(128091 Points)
Replied 23 July 2019
Yes.... Deduction can be allowed. Keep documents for the value of interest & others.
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 23 July 2019
1. According to sec 24(b), there is no specific word mentioning it should be from a specified bank or institution for the purpose of claiming deductions on interest on borrowed capital.
2. There were cases where the unpaid amount for the purchase of house property and interest paid on the sale were also allowed as deductions.
3. So in your case interest on borrowed capital will surely be available as deductions u/s 24(b) subject to a maximum of Rs. 200,000.
4. However, if the property is rented out there is no limit on deductions of interest on borrowed capital.
5. However, a certificate must be provided to this effect from the borrower for payment of interest on borrowed capital.
Please correct me if the above solution has an alternative view.
Recent Topics
- Share office desk in bkc, near family court
- 80D claim for payment paid by parent
- TDS on purchase of Flat under subvention scheme be
- Nznxnc call me at the end of the day of the
- Nsje snswk fjw ed le ene djff ne enje ejdd rejje
- Hxjcif the day I have been in touch with me and
- Iska djd djrbdsjebshe sir ur rei ejr reinr the jr
- GST registration for medical shop in Karnataka
- Hsshs me know if you are free number of the
- Chu Kang and the situation of the situation and I
Related Threads
CAclubindia
