vijendra (article trainee) (230 Points)
18 July 2016
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 18 July 2016
vijendra
(article trainee)
(230 Points)
Replied 18 July 2016
Originally posted by : Poornima Madhava
Only interest portion is eligible for deduction u/s 80E
No deduction is available under u/s 80C
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 19 July 2016
Only interest paid on an educational loan is allowed as deduction u/s. 80E of The Income Tax Act, 1961, out of his/her income chargeable to tax i.e. Deduction will be allowed only when actual interest is paid. There is no cap on the amount of interest on which one can claim tax Exemption: your entire interest outgo on an education loan is eligible for deduction.
Loan should be taken by individual for pursuing higher education of self, spouse or his /her children’s or for the student of whom you are legal guardian. Hence parents are also eligible to claim deduction of interest paid by them on loan taken for their children’s education
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 19 July 2016
But you can calim deduction for tution fees u/s 80-C.
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 19 July 2016
@ Vishal: 80C deduction in respect of tuition fee is available only for payments to educational institutions/universities etc situated in India https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 19 July 2016
Yes you are right Ma'am
Thanks for correcting me..
CAclubindia
