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Asked by namish on :Jul. 05, 2018

I took a loan from my relatives and used it…

I took a loan from my relatives and used it for the construction of the house? Can I claim a …

I took a loan from my relatives and used it for the construction of the house? Can I claim a deduction for the interest paid to them?

0

Jeeba Jul. 05, 2018

Interest paid on a loan taken for construction/purchase/repair/ reconstruction of house property is allowed to reduce from the house property income. In order to claim a deduction, you should have related documents to prove that loan has taken for the house property.

So you can deduct the interest expenses but ensure that such loan has applied for the construction of a house.

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