Three Occasions Where a Personal Loan Can Give You Tax Benefits - C. S. Sudheer review





In this C. S. Sudheer review, let us explore the different ways in which personal loans can provide tax benefits.

Personal Loans and Tax Benefits

 Use the Funds of Personal Loan on Business Expenses

As per C. S. Sudheer Indian Money, if you utilize instant personal loan to finance business expenses like purchasing equipment, enhancing your working capital and expanding business operations, then you are eligible for tax benefits on personal loans. This is because the amount paid toward loan repayment can be stated as a business expense and reduces your quantum of taxable profit and tax liability at the same time.

Use the Personal Loan Funds on Housing Expenses

Section 24 of the Income Tax Act states that if you use personal loan to buy, construct or renovate a housing property, then you can claim the interest repayments of the loan for tax deductions. However, there is catch in this, as the upper limit for tax deduction stands at Rs 2 Lakhs a year in case the house is self-occupied. As per C. S. Sudheer Indian Money review, if the house is let out, then there is no upper limit on the deduction.

Use the Personal Loan Funds to Purchase Assets

According to C. S. Sudheer review Bangalore, if you want to save on paying taxes, and don’t have a house to repair or a business to invest, then you must consider this option. If you utilize the loan on purchasing a valuable asset like stocks of a company or something else, then you can consider the interest paid to be a part of the cost involved in acquisition. Note that you won’t get the tax benefits for the year you have availed the loan. You get it in the following year, if you sell the valuable asset. When viewed as a part of the cost of acquisition, the interest paid on personal loan reduces the capital gains earned out of the sale of the asset and so reduces the taxable sum too.



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