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deduction u/s 80E

Saurabh Toshniwal (ca final) (2363 Points)

03 August 2010

an assesse has borrow loan from froeign country for higher education ....can he claim deduction u/s 80E for the interest amount

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4 Replies

Dheeraj (Learner) (1100 Points)
Replied 03 August 2010

yes

an assessee can claim deduction

if he/she borrowed loan from any recognized financial institution...

from anywhere, whether in INDIA or OUTSIDE INDIA

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Manoj BG (Tax Professional and in Service) (1795 Points)
Replied 03 August 2010

DEAR SOURABH,

YES AGREED WITH DHEERAJ.

DEDUCTION UNDER SEC 80E WOULD BE ALLOWED SUBJECT TO :

1. DEDUCTION WOULD BE ALLOWED ONLY FOR INTEREST PAID ON SUCH EDUCATIONAL LOAN

2. LOAN SHOULD BE TAKEN ONLY FROM ANY BANKS, NOTIFIED FINANCIAL INSTITUTIONS OR APPROVED CHARITABLE INSTITUTIONS WHETHER IN INDIA OR OUTSIDE INDIA.

3. LOAN SHOULD BE TAKEN FOR FULL TIME GRADUATE OR PG COURSE ON ENGINEERING , MEDIINE, MANAGEMENT OR PG IN APPLIED SCIENCE OR PURE SCIENCE.

4. IT IS IRRELEVANT WHETHER U PERSUE COURSE IN INDIA OR OUTSIDE INDIA.

5. INTEREST ON LOAN SHOULD BE PAID ONLY OUT OF THE INCOME WHICH IS NOT EXEMPT FROM TAX.

FINANCIAL INSTITUTION MEANS ANY FINANCIAL INSTITUTIONS TO WHICH BANKING REGULATION ACT APPLIES AND INTITUTIONS NOTIFIED BY OFFICIAL GAZZATE.

IF ALL THIS 5 CONDITIONS SATISFIES, U WOULD BET DEDUCTION U/S 80E

REGARDS,

MANOJ

Murtaza I Bhagat (Tax & Finance Consultant) (10528 Points)
Replied 03 August 2010

yes agreed, no limit of interest to take benefit u/s 80E

harish .k (STUDING) (306 Points)
Replied 04 August 2010

Ya agree with the above friends, loan borrowed from a financial institution for purpose of Educatiion whether in india or Abroad , the Assessee can calim deduction u/s 80E interest part without any limit amount , upto 8 years from the date of borrowing .