19 July 2010
Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian.
Higher studies 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;
Income tax department has added (W.e.f. A.Y. 2010-11) additional fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or University recognised by the Central or State Government will also be covered under deduction in respect of interest paid on loan taken for higher education.
6. Interest should have been paid for the loan taken for the purpose of pursuing his higher education or of the spouse and children.
From A.Y. 2010-11 Relative also includes student for whom the individual is the legal guardian.
THERE IS NO CONDITION THAT RELATIVE SHOULD BE DEPENDENT.
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