can an individual get benifit of tution fees paid out of Loan taken U/s 80C and as well as interest dection U/s 80E?
Ankit CA and CS
(Manager - Accounts)
(204 Points)
Replied 14 June 2010
In Sec 80C defination of tuition fees is given... so refer that...
jitender
(ca final )
(51 Points)
Replied 14 June 2010
how much amount we can take for interest u/s 80 E & which type of loan?
Sandeep Kumar
(learner)
(81 Points)
Replied 14 June 2010
Tax Benefit
Repayment of an education loan is deductible under section 80E of the Income Tax Act. The yearly limit for deduction is Rs. 40,000 (for both the principal and the interest). Only loans taken for higher education - fulltime studies in any graduate or post-graduate, professional, and pure and applied science courses - may claim deduction. The deduction will be available for a maximum of eight years starting from the day you start repaying.
Sandeep Kumar
(learner)
(81 Points)
Replied 14 June 2010
Dear Mukesh,
U/s 80E deduction available on the repayment of education loan & interest there on. if u r paying both i.e. tution fee n interest on education loan the u can claim deduction U/s 80c & 80E both subject to above
vipul Aggarwal
(CA)
(60 Points)
Replied 14 June 2010
he can enjoy the benefit of tuition fee u/s 80C & interest on edu. loan u/s 80E, whether it has been paid out of education loan or from any other source
vipul Aggarwal
(CA)
(60 Points)
Replied 14 June 2010
Dear Sandeep
please correct ur knowledge
u/s 80E deduction is available for the payment of interest on edu. loan and no deduction is allowed for the repayment of edu. loan, niether u/s 80E nor u/s 80C
limit for deduction for interest is Rs 40000 per year or total amt that included both the principal and interest paid during the year , whichever is lower
Nabeel
(CA)
(3288 Points)
Replied 15 June 2010
No, u/s 80E deduction is available for the payment of interest education..... so no deduction is allowed for tution fees paid out of loan..
Chandan Singh
(Professional)
(270 Points)
Replied 15 June 2010
Mr. Nabeel is Right.
u/s 80E deduction is available for the payment of interest education..... so no deduction is allowed for tution fees paid out of loan....
Jeenesh Mehta
(Article)
(25 Points)
Replied 15 June 2010
Arre Interest on education loan is allowed as deduction to student or its parent and principal portion is not allowed also note dat ther is not thresh hold for amount of deducation as stated here by some users(40,000).
Acts states as follows:
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 interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education [or for the purpose of higher education of his relative].
(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 the interest referred to in sub-section (1) is paid by the assessee in full, whichever is earli
TRMANJUNATHA
(CHARTERED ACCOUNTANT)
(36 Points)
Replied 17 June 2010
ONLY INTEREST ON EDUCATION IS ALLOWED AND THERE IS NOT THRESHOLD LIMIT FOR THE SAME
renny
(student)
(102 Points)
Replied 31 July 2010
I Agree with geenesh mehta
There is no thresh hold limit
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