Can u pls let me know how much exemption of educational loan for salaried person.
Amod Ranjan (Service) (356 Points)
10 March 2010Can u pls let me know how much exemption of educational loan for salaried person.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 10 March 2010
The interest you pay will be deducted from your income; there is no limit any more. It will reduce the tax you have to pay.
No deduction, however, is now available for the principal repayment.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 10 March 2010
Also mind following things :
You will get the tax benefit on an education loan only if the loan is in your name. You cannot claim the tax deduction if the loan is taken for someone else, be it your spouse or children or even a sibling. Only the person for whom the loan is valid will get the tax benefit.
So, if you take an education loan, you -- and not your parents or whoever took the loan -- will get the tax benefit when you start repaying it.
C.Balaji
(Learner)
(1867 Points)
Replied 10 March 2010
Dear Dhiraj bhai.....Thanks for the reply.....
But i have one query........
I saw some where in our caclubindia forum....that 80E - Interest paid is allowed even it is taken for individual, spouse, children of individual or student whom individual is guardian........
Please clarify......
C.Balaji
(Learner)
(1867 Points)
Replied 10 March 2010
I have found out the link.....Please see this..........
/forum/deduction-under-section-80-e-70030.asp
Bala
(Student)
(498 Points)
Replied 10 March 2010
| Originally posted by : C.Balaji | ||
 |
Dear Dhiraj bhai.....Thanks for the reply..... But i have one query........ I saw some where in our caclubindia forum....that 80E - Interest paid is allowed even it is taken for individual, spouse, children of individual or student whom individual is guardian........ Please clarify...... |
 |
Friend Balaji is correct.. Deduction is allowed for them also..Furhter to add it is avaliable for a max of 8 yrs or till interest is paid whichever is earlier.. Waiting for other friends views
CA Saurabh Shukla
(Accounts Executive)
(223 Points)
Replied 11 March 2010
In simple words,
if loan is taken by Mr. A it may be for the education of Mr. A or his spouse or his childeren.
But, for geting the benefit of Sec 80E loan should be in name of Mr. A and repayment should also be made by Mr. A .
Correct me , if i m wrong.........
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 11 March 2010
| Originally posted by : C.Balaji | ||
|
|
Dear Dhiraj bhai.....Thanks for the reply..... But i have one query........ I saw some where in our caclubindia forum....that 80E - Interest paid is allowed even it is taken for individual, spouse, children of individual or student whom individual is guardian........ Please clarify...... |
|
Hi balaji..
U r alwz correct bro., it was just that the person wanted to know about that particular individual (getting salary) and so while writing in mistakenly wrote ONLY HIMSELF... didnt specify about RELATIVES., and term there on....
Nywz, thanx for correcting
Prasanth Nair V
(ACA,ACS,CWA Final,Mcom)
(557 Points)
Replied 11 March 2010
Under Section 80E of the Income Tax act. only Interest on Education Loan is Allowed as a deduction, and not the PRINCIPAL. There is no Exemption, but Deduction from your taxable Income.
Sumiti Jain
(FP)
(1364 Points)
Replied 11 March 2010
Section 80E
| INSERT (AY 2009-10) Deduction under section 80E of the Income-tax Act allowed in respect of interest on loans taken for pursuing higher education in specified fields of study to be extended to cover all fields of study, including vocational studies, pursued after completion of schooling. |
Under this section, deduction is available for payment of interest on a loan taken for higher education from any financial institution or an approved charitable institution. The loan should be taken for either pursuing a full-time graduate or post-graduate course in engineering, medicine or management, or a post-graduate course in applied science or pure science.
The deduction is available for the first year when the interest is paid and for the subsequent seven years. Up to March 2005, deduction was available for the repayment of principal and interest aggregating to Rs 40,000 a year.
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
