higher education loan
This query is : Resolved
22 August 2008
HI,
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
Amit
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
Amit
22 August 2008
It is also included in the meaning of Education Loan
22 August 2008
HI,
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
Amit
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
Amit
22 August 2008
we are asking for tax cumputation is principal amt is exempted or not if yes kindly provide the section.
22 August 2008
Section 80E
DEDUCTION IN RESPECT OF REPAYMENT OF LOAN TAKEN FOR HIGHER EDUCATION.
(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan :
Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.
(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until loan referred to in sub-section (1) together with interest thereon is paid by the assessee in full, whichever is earlier.
(3) For the purposes of this section, - (a) "Approved charitable institution" means an institution specified in, or, as the case may be, an institution established for charitable purposes and notified by the Central Government under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;
(b) "Financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
(c) "Higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics 1002f ;
(d) "Initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts repaying the loan or interest thereon.
DEDUCTION IN RESPECT OF REPAYMENT OF LOAN TAKEN FOR HIGHER EDUCATION.
(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan :
Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.
(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until loan referred to in sub-section (1) together with interest thereon is paid by the assessee in full, whichever is earlier.
(3) For the purposes of this section, - (a) "Approved charitable institution" means an institution specified in, or, as the case may be, an institution established for charitable purposes and notified by the Central Government under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;
(b) "Financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
(c) "Higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics 1002f ;
(d) "Initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts repaying the loan or interest thereon.
22 August 2008
we have also having this detail this is not confirming the concept principal amt.
22 August 2008
any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan -- Means the Principal Amount
22 August 2008
The Word Repayment of Loan - refers to Principal Amount
22 August 2008
the principal amt of education loan is exempted or not as far as my knoweldge only interest is exempted.
22 August 2008
Yes You are Right Now I got the Correct Source Wait
22 August 2008
http://law.incometaxindia.gov.in/TaxmannDit/Displaypage/dpage1.aspx?md=2&typ=cn&yr=2008&chp=194
It Says Only Interest
It Says Only Interest
22 August 2008
i want to know that principal for higher education loan is included in exemption
22 August 2008
HI,
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
prem
PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also
Regards
prem
22 August 2008
Principal Paid on Eductional Loan is not Exempt..
i Discussed with my Audit Mananager
i Discussed with my Audit Mananager
24 August 2008
Under Section 80E its only interest that is allowed as deduction and not principal+interest which was earlier. Hope it clarifies
25 August 2008
Yes Check section 80E
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Manual Rectification through AO
- IT Return filed defective u/s 139 (9)
- Fixed Deposit Claim Relinquishment by the Nominee
- Defective Return - Tds on advance
- Income Type for interest from government bonds
- TCS ON SOFTWARE SALES
- Not a CA , can we prepare balance sheet
- Valuation of diamonds as on 01.04.2001
- What is meaning of merging of expenses or income in accounts
- Accounting treatment of write off sundry debtors
- Gstr 9 2023-24
- GSTR-9 HSN Summary and Credit Note without item
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- GST RCM not shown in GSTR-3B
- Bill from Dispatched from issue.
Trending Online Classes
-
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
Mr.Balamurugan Ranganathan15 November 2024
CAclubindia
