12 March 2009
I am planning to take a Rs 20 L loan from an Indian bank to fund my MBA in Canada and I understand that the Indian laws allow an individual to avail 100% tax deduction for the interest payment for an education loan. Since I will be residing in Canada under student VISA and later as a Migrant Worker, I was wondering how will i avail the aforementioned tax deduction, if at all?
12 March 2009
Thanks Chief for such a prompt response.
Could you please throw some light on whether there exist any chances for me to claim the deduction, considering the following:
1) I'll be studying in Canada for 1 yr, during which a considerable amount of interest will get accrued and I'll remain to be covered under Indian tax laws.
2) Isnt there any Double taxation treaty clause, which allows Indians to avail such exemption in Canada
3) is there any provision to avail the exemption at some future point of time?
Apologies for the naivety of the questions. I am just trying to how exactly Indian students going abroad gain from such an beneficial govt policy. I do hope that there must be a provision through which Indians who start working post MBA avail the exemption on such a high-quantum loan.
CAclubindia
