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What are the tax benefits of taking a Personal Loan?

April 26, 2017Benefits personal loan taking tax

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What are the tax benefits of taking a Personal Loan?

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The principal repaid does not qualify for tax deduction benefits. However, under Section 24 of the Income Tax Act, the interest paid for a Personal Loan taken for acquisition, construction and renovation of the house can be claimed for tax deduction up to Rs. 1.5 lakh. The borrower can claim tax benefits only after the construction is completed and possessing the property.