Under which section one can get income tax rebate on Land Loan . My lender bank people use to tell that I will not get any income tax rebate for the interest on loan.
Is it different than housing loan
A V Vishal (Advocate) 15 January 2010
Yes the banker is right, you can claim benefit of interest on loan for acquiring/building a house but cannot claim it on purchase of plot/land.
Vineet (Director) 15 January 2010
A residential house includes the land on which the structure has been erected. So if the Housing loan has been availed to purchase land and construct house on the same, the interest paid on loan is available for deduction against income from house property.
If the loan has been availed only to purchase a plot of land, no deduction for interest payment is available unless you are a trader in plot of land.
Praveen (Sr.Officer) 15 January 2010
If i go for building a house on the same plot/ land before closure of land loan. Whether I will be eligible for tax rebate. If yes, then on which loan type ( land / house ) i can avail the rebate
Adv Sindhia (Advocate) 21 January 2010
Vineet clearly specifies that, if the Housing loan has been availed to purchase land and construct house on the same, the interest paid on loan is available for deduction against income from house property.
More specifically, you can avail tax rebate on House Loan Type.
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