Date: 23-01-2010
Nirav
(Tax preparer)
(74 Points)
Replied 19 January 2010
Assessee should pay interest out of his income chargeable to tax for getting deduction.And deduction is allowed if assessee starts paying interest on such loan.
If pricipal amount is not paid...there is no effect on getting deduction of interest...not paying principal amount will have another consequence.