Education exp

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12 March 2012 WHAT IS THE EXEMPT AMOUNT FOR EDUCATIONAL EXP PAID IN FOREIGN CURRENCY?

CA Vijay Kumar Walande

CA Vijay Kumar Walande (Expert)
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13 March 2012 Dear Friend.

Income Tax Act:
The principal amount paid on the loan taken to study abroad is not exempt anywhere whereas interest on loan paid is exempt. However there is no cap on the maximum interest allowed as deduction. The loan should be in the name of the assessee.

Period of deduction is initial AY and seven years following the Initial AY or until the assessee has paid the interest in full whichever is earlier