EDUCATION LOAN / TUTION FEE

This query is : Resolved

shyam (Querist)
Follow

20 June 2008 For IT CALCULATION HOW MUCH AMOUNT WE CAN CLAIM THE DEDUCTION IN EDUCATION LOAN.

IS THERE ANY DEDUCTION AVAILABLE IN TUTION FEE. IF YES PLEASE TELL ME THE AMOUNT.

CA Anand Sarda

CA Anand Sarda (Expert)
Follow

20 June 2008 There is no limit prescribed under the I T Act. However, Deduction is limited to Gross Total Income .Section 80E is given below and give attention to word ANY in RED
"In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education.
(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to in sub-section (1) is paid by the assessee in full, whichever is earlier."