Whether principal repayment of education loan is allowed for deduction if it is taken from a financial institution for higher studies of childrens ?
12 Replies
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 February 2013
no.. only interest payment is deductible u/s 80E
Anuj jain
(CA Final Student)
(163 Points)
Replied 27 February 2013
Ok thanks but one more thing if loan is taken in previous year 2005-2006
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 February 2013
Deduction available if Interest is been paid during the previous year and was paid out of income chargeable to tax which means if repayment is made from income not chargeable to tax than deduction will not available. Deduction will be allowed only when actual interest is paid
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 27 February 2013
what is the procedure of taking education loan???
is education loan available for CA OR CS study???
if yes then pls do guide
thanking you in advance..
Anuj jain
(CA Final Student)
(163 Points)
Replied 27 February 2013
Visit ur nearby any financial institution which offers tha facility of educational loan. Yes education loan can be taken for CA or CS but no deduction is available in the income tax act for this as this is available for full time courses or higher studies or post graduate or graduate courses and CA CS is not full time course. Hence deduction for CA is not allowed.
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 27 February 2013
Thank u sirjee :-)
but 1 more thing is to ask is that is any asset is required to mortgage against such loan???
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 February 2013
its an unsecured loan and hence the rate of interest would be much higher..
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 27 February 2013
but if taken for courses like CA or CS then it would be beneficial in long run.... :-)
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 February 2013
irrelevant.. loan provider needs guarantee of loan repayment.. do u have a guarantee to pass and become a CA?
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 27 February 2013
how can a person give such a guarantee??? :-)
sirjee i need to take education loan for my C.S. study on my brother's a/c in a bank
is it possible???
CA Ankit Totla
(Practicing Chartered Accountant)
(469 Points)
Replied 27 February 2013
contact bank..!!
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 01 March 2013
hi
refer for more clarity: /forum/faq-deduction-for-interest-on-education-loan-s-80e-of-it-241006.asp
Thanks
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