r2i forum

I've just about finalized the purchase of an apartment in Chennai ... and wanted to see if I can claim an exemption for the interest payments when I file my taxes in April 2011. Will the bank (HDFC) give me a 1098 similar to what we get from the US banks?

Cheers!

IMO, you cannot! Unless you deduct the taxes on your interest payment and send them to the IRS, i don't think you can do that. In reality, no bank in India would be willing to let go a portion of their interest payments as taxes to another country.
A lot has been discussed in the post below:

http://www.r2iclubforums.com/forums/showthread.php/461-US-Tax-withholding-for-interest-payment-on-loans-obtained-in-India?highlight=interest+on+apartment+in+india

Thanks for the link.

In reading through that, it looks like quite a folks have been able to claim the interest exemption (see the replies starting from here).

I also looked up on fairmark and found this:

http://fairmark.com/forum/read.php?4,50115

PeterGriffin;274442IMO, you cannot! Unless you deduct the taxes on your interest payment and send them to the IRS, i don't think you can do that. In reality, no bank in India would be willing to let go a portion of their interest payments as taxes to another country.
A lot has been discussed in the post below:

http://www.r2iclubforums.com/forums/showthread.php/461-US-Tax-withholding-for-interest-payment-on-loans-obtained-in-India?highlight=interest+on+apartment+in+india