Deduction of Education loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2010 Bank has advanced Education loan to My son ( ABC S/O DEF). I ( DEF) is paying the instalments to bank in the account of ABC.

Is the Deduction of Intt on Education Loan is permisible to Me ( DEF)

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2010 NO.
Eduction loan should be taken by Assessee.
If loan taken by son (and not by his parent for higher studies of his child) and repayment made by father, father will not be eligible for 80E deduction.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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21 June 2010 agree

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 June 2010 No, Dear Sanjay

With effect from AY-2010-11 the provision has changed even for spouse, child, relatives can be claimed

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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21 June 2010 if father has taken loan for his son than that interest is allowed as deduction but here son has taken the loan in its name and father is paying the interest so its not allowed.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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21 June 2010 Ramesh Ji,
The section uses the word Loan taken by assessee for the purpose of pursuing his higher education or for the purpose of higher education of his/ her spouse or children. Here loan is taken by son and repayment made by father. If father had taken the loan for higher studies of his son then this repayment would have qualified for deduction. May be i am not update with new changes can you please throw some light on this.
Regards

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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21 June 2010 Agree your Point Mr.Sanjay, since the section is clear the loan taken by the tax payer only but purpose only for all, so for claiming deduction the tax payer has to take the loan on his account.in this case son can claim the deduction. sorry for my previous reply