Does Personal Loan taken for building a house in addition to Housing Loan Qualify For Tax Rebate? I am enquiring about Indian Income Tax Laws.

What are all the Documents required to prove that Loan is used for house Construction? Will I need a letter from my Bank which gave me Personal Loan saying its used for House Construction. I don't think so they will give it. I have put the Loan amount directly to My Savings account and the same has been utilised by way of Cheque payments to my Builder and Material purchase. Is this enough proof that I have used it for right purpose. Also I paid a processing fee on my personal loan will that also qualify for any rebate? Will both the interest and principal repayment on Personal loan qualify for IT rebate

Hello Dr:

I'm not sure what tax rebate you're talking about. If it's the one that's being sent to everybody, you only need to be a taxpayer to get it.

If you're talking about being able to deduct the interest because this is a home, you might. However, you may have to move in before you qualify... In any case, your tax preparer can answer these questions for you.

I see at the end of your question, you use another term like IT rebate. I don't know what that is.

excon

Dr Sudheer:
Are you taking about India income tax or the U.S. income tax?

Dr Sudheer:
Are you taking about India income tax or the U.S. income tax?


I am talking about Tax laws in India