Friday , 15 December 2017
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Is Interest on Loan Borrowed From Individuals Allowed Deduction u/s 24 & Section 80C?

Deduction u/s 24 allowed:

The deduction interest u/s 24 is allowable of any kind of loan, however, a certificate from the lender regarding the interest payable/paid and principal amount is required. The said section does not prescribe that loan has to be borrowed from financial institution or bank only for getting the deduction.

Deduction u/s 80C not allowed

However, the deduction u/s 80C for the payment of principal amount of loan borrowed for buying a house or constructing the house has to be from specified institution , company or bank. The said provision is clearly written in section 80C(2)((xviii)

About CA Karishma

I am a Chartered Accountant by profession and an avid teacher. Writing is my hobby and this blog is a platform to share knowledge and interact with prospective Chartered Accountants. I locate my work at the intersection of Chartered accountancy & education. I teach among others, Taxation at Tapasya Academy for CA, one of the premier institute for Chartered Accountancy course in Andhra Pradesh.

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