For construction or buying a house, I have borrowed loans from friends and relatives and not borrowed home loan from bank. I am paying interest on such loans but not in the form of EMIs. Can I claim deduction on account of such interest paid?

For construction or buying a house, I have borrowed loans from friends and relatives and not borrowed home loan from bank. I am paying interest on such loans but not in the form of EMIs. Can I claim deduction on account of such interest paid?

Yes, as the source of the loan does not matter. However, the loan must be taken and utilized for purchase, construction, acquisition, renovation or repair of the house property. The person from whom loan is taken and to whom interest is paid must be in India and he must be liable for tax on such interest paid by you to him.