Section 80E

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Devendra (Querist)

06 February 2011 1)Mr. X has taken a loan from bank for doing Masters in Marketing Management. Whether interest paid on the same is allowable as deduction u/s 80E?

2)Does it matter if the loan is in his name or in the name of either of his parents? Can Mr. X claim the deduction in his ITR, even if the loan is not in his name ?

Regards,
Devendra Kulkarni

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

06 February 2011 1)Mr. X has taken a loan from bank for doing Masters in Marketing Management. Whether interest paid on the same is allowable as deduction u/s 80E?

Yes. as the loan is menat for higher studies
and loan is taken by X himself, it is allowable u/s 80E.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

06 February 2011 2)Does it matter if the loan is in his name or in the name of either of his parents? Can Mr. X claim the deduction in his ITR, even if the loan is not in his name ?

Ans. Mr. X can not claim interest unless he is a co-borrower with any of the parents taking loan.
How ever his parent can get deduction U/s 80E as Mr X is a relative of them.

Interestingly, converse is not true.
Parents are not relatives of Mr. X vide Section 80E (3)(c).

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