Section 80V
Deduction in respect of interest on moneys borrowed to pay taxes
Quick Answer
Section 80V (Deduction in respect of interest on moneys borrowed to pay taxes) has been deleted under the Direct Tax Code 2025, effective 1st April 2026.
Sec 80V
Provision Summary
Allowed a deduction for the interest paid on loans specifically taken to pay income tax liabilities.
Deleted
Provision Summary
NA. Deleted. Interest on borrowing to pay personal income tax is explicitly a non-deductible personal expense.
Key Changes & Highlights
- Removed to close a loophole.
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Frequently Asked Questions
What does Section 80V of the Income Tax Act 1961 deal with?
Section 80V (Deduction in respect of interest on moneys borrowed to pay taxes) Allowed a deduction for the interest paid on loans specifically taken to pay income tax liabilities.
Is Section 80V of the ITA 1961 still applicable under DTC 2025?
Section 80V has been deleted under the Direct Tax Code 2025. NA. Deleted. Interest on borrowing to pay personal income tax is explicitly a non-deductible personal expense.
What is the status of Section 80V under the new tax code?
Section 80V is marked as "Deleted" with status "Deleted". Impact: Low - Often cited in academic tax discussions.
What are the key changes to Section 80V under DTC 2025?
Removed to close a loophole.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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