Are you familiar with the potential tax benefits on loans from personal channels like family and friends?
As a prominent real estate advisory firm providing the best real estate guidance in Delhi & NCR, 360 PropGuide is committed to equipping our readers with crucial financial insights. Today, we delve into this lesser-known aspect of tax planning to help you make informed decisions.
Under the provisions of Section 24 of the Income Tax Act, borrowers can indeed claim tax benefits on the interest payments for loans acquired from personal sources. This means that if you have borrowed funds from your family or friends, you have the opportunity to leverage this provision for potential tax savings.
However, it is vital to take into account a few essential considerations. While interest payments are eligible for deductions under Section 24, it's crucial to note that tax benefits on the repayment of the principal component (Section 80C) are not applicable in such cases.
Additionally, tax benefits provided under Sections 80EE and 80EEA, which are specifically designed for home loans, cannot be claimed if you have availed loans from personal channels.
At 360 PropGuide, we emphasize the significance of staying well-informed about tax regulations. We encourage you to consult with a tax professional or financial advisor to gain a deeper understanding of the specific details and implications of claiming tax benefits on loans from personal sources.
Whether it's a loan from a bank or a loan from a family member, being aware of the tax benefits can help you make sound financial decisions and optimize your savings effectively.
As the best real estate broking firm in Delhi & NCR, 360 PropGuide is your trusted partner in real estate matters. Stay tuned to our blogs, where we regularly share expert insights and comprehensive guides to enhance your financial knowledge and navigate the real estate landscape with confidence.