Personal Loan is just like a magical lamp for you which provide you with the instant financial requirement, to help you in need of sudden emergencies. They are unsecured loans, which mean you don’t have to give any security to the bank as collateral.
Generally, personal loans are not taxable, as loans are not considered a part of your income when you are filing your IT returns. However, if you want to compute your taxes then make sure the personal loan should be from a valid bank. Hence, then you can claim the income tax benefits on personal loans. However, in order to avail them, there are some conditions attached to it.
Whether if you get the tax benefits or not will solely depend on the end use of the loan amount. If you have used your personal loan amount to acquire, construct, repair, or reconstruct a house or property, you can claim tax benefits, only if you can prove that you have used the loan for a valid expense, you can actually claim tax deductions on the interest paid oncontinue reading →