20 March 2013
Sec 80E relates to deduction in respect of interest paid on loan taken for the purpose of pursuing higher education for self, spouse, children or children for whom the assessee is the legal guardian. There is no cieling limit for deduction out of such interest paid.
Suppose X takes a loan of Rs 100 for MBA studies of his daughter and pays Rs 20 as interest during a financial year, then he would be eligible for a deduction of Rs 20 over and above the specified limit of Sec 80-C.
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