A (Engineer) (132 Points)
02 February 2011I took an educational loan in FY 2008-09. And started the payment of interest in FY2008 - 2009 only. But in FY 2009 - 10 , I could not pay the interest because of recession & financial problems.
Again I have paid the accumulated interest of FY 2009 - 10 & the interest of FY 2010 - 11 in 2010 - 11.
Will I be able to claim deduction under 80E for the whole interest ( accumulated interest of 09-10 & interest of 10 - 11 ) in FY 2010 - 11 ( AY 2011 - 12 ) return .
Please advice
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 02 February 2011
Yes. If the amount paid is towards interest on loan, deduction is allowable.
It has not been specified in the act regarding interest relevant to the previous year, only.
A
(Engineer)
(132 Points)
Replied 03 February 2011
Sir thanks for the reply.
Just wanted to add here that the interest claimed will be two previous years & not only one previous year. In that case also is it allowed.
Actually the Bank manager is saying we cant claim that.
siri
(CFO)
(174 Points)
Replied 03 February 2011
sec. 80E consideres only the acctual payment of interest during the previous year, and not considers wether the interest paid covers 2 years or more. so u can claim the full amt of interest paid as deductioon u/s- 80E.
CA PARAS BAFNA
(Practising CA )
(33428 Points)
Replied 03 February 2011
Bank manager need not to claim deduction.
It's the payer of interest who can claim. So request him, for the certificate of interest paid by you.
In case he specifies year wise break up of interest, it will not make any difference as the same will be allowed to you on payment basis.
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 03 February 2011
Here the method of accounting is a factor,
if the account has got debited on earlier years with other accounts and now getting claimed on book entry only then its better to take one year claim only.
but if the education loan is fully unpaid and did not got "credited" with anything, but got "credited" only on the day of this payment, then obviously the same is deductible,
here the bank have to issue the amount of principal and interest bifurcation only towards the total payment made now.
A
(Engineer)
(132 Points)
Replied 04 February 2011
First of all thanks to all of you for the replies.
Bank is giving interest certificate on year wise break such as
2009-10 --- X amount interest
2010-11 --- Y amount interest.
As such the manager is saying i can give you only year wise break up of interest so you can claim the 2009-10 interest in 2009 IT return only & you can club the 2009-10 interest with 2010-11 interest & claim deduction.
Please help.
The loan account was fully unpaid in 2009-10 & it got credited only in 2010-11 when payment was made, but then also bank is saying they will give the interest break up interest wise
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 04 February 2011
| Originally posted by : A | ||
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First of all thanks to all of you for the replies. Bank is giving interest certificate on year wise break such as 2009-10 --- X amount interest ...........paid on 2010-11 --- Y amount interest. ...........paid on As such the manager is saying i can give you only year wise break up of interest so you can claim the 2009-10 interest in 2009 IT return only & you can club the 2009-10 interest with 2010-11 interest & claim deduction. Please help. The loan account was fully unpaid in 2009-10 & it got credited only in 2010-11 when payment was made, but then also bank is saying they will give the interest break up interest wise |
 |
the date of payment or credit in account is important, not the years.
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