As per Income tax act, Deduction U/s 80E is allowed for Interest paid on Education Loan. Kindly advise whether it is based on paid basis or accrual basis.
for Example. Bank debited Interest Rs. 50000 on education loan, however assessee deposited only 40000/- in loan account during the f.y. 2011-12
Kindly advise which amount can be claimed u/s 80E, whether 50000/- or 40000/-
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