Will a home loan taken from a friend/relative be eligible for tax-deduction?
Yes, you can claim deduction on the interest on the loan under Section 24, which is up to Rs 1.5 lakh a year. However, you cannot claim deduction on the principal amount under Section 80C, as that will be applicable only if you take a home loan from a recognised financial institution.
Which document will help the borrower claim deductions?
Interest payment to friends and relatives can be claimed under Section 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction.
Yes, you can claim deduction on the interest on the loan under Section 24, which is up to Rs 1.5 lakh a year. However, you cannot claim deduction on the principal amount under Section 80C, as that will be applicable only if you take a home loan from a recognised financial institution.
Which document will help the borrower claim deductions?
Interest payment to friends and relatives can be claimed under Section 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction.
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