Neha sharma (-) (1257 Points)
11 July 2016Hi
One of my clients is taking a personal loan and is asking if any Tax Deduction would be allowed for Personal Loans.
He says he will take the personal loan and invest it exclusively in
subhash kumar jha
(PROFESSION)
(445 Points)
Replied 11 July 2016
CA shanky pahoja
(accountant)
(615 Points)
Replied 11 July 2016
@ Neha as your question is vague
If you are asking whether your client is required to deduct TDS then its answer depends on whether loan is taken from banking co. or NBFC in case of NBFC answer is yes
If you are asking whether your client can claim TDS as deduction then answer is no as TDS is not an exp.
If you are asking whether interest or other exp. on loan is allowed then answer is yes if it is invested for buying personal house property then yes principal payment is allowed as per sec. 80c and under head income from other sources interest is allowed and if it expended to buy any assets related to business, Exp. is allowed after such asset is put to use. otherwise interest will be capitalised.
hope it helps you
CAclubindia
