New Delhi, Dec. 24 -- "He is poor, his neighbour is poor. How do they manage? They borrow from each other."

This is one of my favourite quotes and explains the importance of borrowing for each of us. This article discusses various tax benefits associated with different loans.

Section 24(b) of the Income Tax Act allows you a deduction for interest paid on money borrowed for the purchase, construction or even for the repair or reconstruction of a house property. This benefit is available for both commercial and residential properties. Even the processing fee and prepayment charges paid for a home loan are treated as interest for income tax purposes and are eligible for deduction.

This deduction is available for any money borrowed, whethe...