Q: Is tax credit for 'profit on debt' u/s 64 of the ITO-2001 allowed to an employee who has used concessional loan from employer in construcion/acquisition of new house?
Ans. Tax credit on profit on debt u/s 64 is allowed against a profit on debt paid by a person to any of the persons listed in sub-section (1) of sec 64 i.e. Scheduled Bank, NBFC, Govt, Local Govt, Public Listed Co., or any statutory body.
An employee shall be allowed a tax credit aginst profit on debt deemed to have been paid u/s 13(8) of ITO-2001 by him to his employer if the employer is among any of the persons listed in Sec.64(1). In case the person is employee of any other person e.g. individual, tax credit u/s 64 shall not be allowed.
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