DOUGHT ON 80E EDUCATIONAL LOAN

This query is : Resolved

rajesh (Querist)
Follow

07 January 2010 DEAR SIR/MADAM

AN ASSESSEE EDUCATIONAL LOAN TAKEN ON HIS DAUGHTER NAME AND SHE IS LEARNING IN AUSTRALIA AND LOAN REPAYMENT BY HER FATHER
ASSESSEE IS ELIGIBLE FOR DEDUCTION EDUCATIONAL LOAN IN SEC-80E OR NOT

NOTE 1. 80E EL LOAN INTEREST REPAYMENT IS ELIGBLE ALSO OUT SIDE INDIA OR ONLY IN INDIA

2. INTEREST IS DEDUCT ONLY PAYMENT OR DUE ALSO

PLEASE TELL

THANKS IN ADVANCE

Manish V. Khatri

Manish V. Khatri (Expert)
Follow

07 January 2010 Yes, Father is eligbile for u/s 80E of the Income-tax Act, 1961 and only Indvidual can take Deduction.

1. From your case, it seen that deduction is eligbile only in India, since you are going to file your Income Tax Return only to Indian Government and not to Australian Government. However the Austrain Income-tax Act is not applicable to India and Indian person who are Resident of India.

2. Interest is allowed under Payment basis for the same you have to provided receipt of interest payment which you have received from the lender for deduction.

CA. Varun Goel

CA. Varun Goel (Expert)
Follow

07 January 2010 The assessee who is taking the loan (for spouse, children) and paid the interest himself then only get the benefit of Sec. 80E. In this case father is taking the loan for his daughter and paid the interest then he is eligible for the benefit of Sec.80E

1. This section is only eligible in INDIA.
2. Deduction is allowed only on the payment basis.

Upgrade to CAclubindia Pro. Subscribe Now!

Manish V. Khatri

Manish V. Khatri (Expert)
Follow

07 January 2010 The assessee who paid the interest on loan for higher education is eligible to get deduction u/s 80E even though it taken for his spouse or children.

1. Yes this section is applicable to India only.
2. Yes it allowed only in payment basis to an Individual.

rajesh

rajesh (Querist)
Follow

07 January 2010 Manish V. Khatri Garu LOan for Higher Education In Australia taken from Indian Scheduled Bank In INDIA Loan Taken on th name of daughter interest repayment by father he is eligble for claim u/s 80E

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
Follow

07 January 2010 I think there is an issue in this matter because as Mr. Rajesh said that Loan has been taken in the name of Daughter but not in the name of the Assessee.

As given u/s 80E "Loan taken by HIM for the purpose of pursuing his higher education 39[or FOR the purpose of higher education of his relative]."

In above para(sec 80E) we see that here "TAKEN BY HIM" word used by the section, therefore based on this point assessee is NOT liable to take any deduction, because loan is not in his name.

Regards!!!
Dinesh S. Adhikari

Manish V. Khatri

Manish V. Khatri (Expert)
Follow

07 January 2010 In your case the father is not eligble for deduction u/s 80E because loan is in the name of your's daughter.

Section 80E specifically say that loan taken by an Individual assesse from any financial insitution or any approved charitable insitution for the himself or his relative then it will eligble for deduction it means person who taken the loan is eligble for deduction irrespective of case who pay the interest on such loan.

CA. Varun Goel

CA. Varun Goel (Expert)
Follow

07 January 2010 As apear from the facts that loan is taken on the name of assessee's daughter (i.e. loan taken by assessee's daughter ) and interest is paid by the assessee..
In this case benefit of Sec 80E is not available to assessee.

Regards
CA. Varun Goel

Upgrade to CAclubindia Pro. Subscribe Now!