Tax Deduction on Interest for purchase of Land

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  1. B S

    B S New Member

    Hi,

    Please look at following link:

    http://businesstoday.intoday.in/sto...-between-buying-plot-or-a-house/1/190084.html

    In the above article, it is said that

    "The interest paid on any loan for purchase of land which is vacant shall not qualify for tax deduction. However, if the plot is rented out, irrespective of whether the rental income is offered for taxation as 'business income' or 'income from other sources', the interest paid on any loan used to buy the plot can be availed of as deduction. There will be no tax benefit for repayment of the principal of such loans,"


    Please clarify this as many articles on internet claims that no tax exemption is allowed on land loan alone.

    Can you really claim interest part as tax benefit ? and if yes, then please state the relevant provision/section of income tax rules.

    Thanks in advance.
     
  2. B S

    B S New Member

    Pls reply...... anyone ??
     
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