Sec 80e deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Facts of the case:

1. Education loan taken by an Individual woman before marriage in her name.

2. She gets married.

3. Husband pays the education loan out of his income.

4. Will the husband be eligible for deduction of interest under section 80E?

CA LOKESH KASAT, FCA, M.Com

CA LOKESH KASAT, FCA, M.Com (Expert)
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06 April 2013 under section 80E Relative means spouse and children of individual or the student for whom Individual is legal guardian.

So Husband can claim deduction

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Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Thanks for the reply. But the loan is in the name of the wife. Does it still qualify?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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06 April 2013 Section 80E provides as under:

"In computing the total income of an assessee, being an individual, there shall be deducted, ....., any amount paid by HIM in the previous year, ..., by way of interest on loan taken by HIM........."

Accordingly the loan should be taken by the individual himself (the loan can be for his higher studies or that of his relative). The loan should be in the name of the individual.

In this case the loan is in the name of the wife and accordingly the husband CANNOT claim deduction of interest paid.