Does personal loan give Income tax benefits?

For any Personal loan, the interest paid is for the most part not deductible. However if the loan is used in obtaining any income which you are unveiling in your Return of Income and in a position to legitimately identify the loan with gaining that income, then the interest and different expenses might be guaranteed as a deduction.  There is no other method of benefiting from personal loan under the Indian Income tax law of 1961 as changed till date.

                   Assuming that you have taken a personal loan from a bank, housing finance company, Life Insurance Corporation of India or from an employer and used the cash for purchase or construction of a house, you can assert IT profits for both principal and interest paid.  But in the event that you have taken a loan from a friend or relative, and then you can assert tax reductions on the interest paid justly. In any case, provided that you have taken a loan for renovation of your house building, then you can claim reasoning up to Rs.30, 000 a year of the interest paid.

Normally such Personal loans have to be arranged in such a manner, that some origin of income gets tagged. Loans for particular utilization or family matters are not entitled to Income tax concessions. Also loan for marriage, education, traveling and do not get such concessions. Usually, a few organizations like ICICI, HDFC and LIC make loans for Housing and vehicle necessities. They also do not usually provide loans for different purposes to salaried individuals since they can lay their substantial hands effectively and rapidly in the event of default on these possessions and recuperate their giving.