Dear Friends,
I took a loan from a friend for purchase of house and the house is Let-out. I am paying interest to the friend.
I request you to please let me know if I can claim the interest in calculations of the Income Tax. Our HR person says, I can claim interest portion only for the loans taken from Banks and other Financial Institutes only and not from the individuals. Is it correct? HR is asking for Provisional interest certificate from the Banking / Non banking financial institutes.
Please let me know, is there any way for me to claim the Interest component being paid to my friend. My friend has got PAN card and is ready to help me. I would like to show the interest as part of Loss on Housing Property, as the house is Let Out and is in another city.
Thanks in advance for your valuable suggestions.
Regards, Jhaji