Long Term Finance Provided For Purchase Of Residential House, Bank Entitled For Deduction ; Kerala High Court

In a recent Kerala High Court decision, it was ruled that long-term finance for purchasing a residential house from a bank does not qualify for tax deduction under Section 54F of the Income Tax Act. The court emphasized that the term "bank" in the section refers to financial institutions engaged in banking business, excluding housing finance companies. This decision clarifies the scope of tax benefits related to residential property purchases financed by banks versus housing finance companies.