Ashim kr Ray (social service) (1695 Points)
30 July 2016
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 30 July 2016
Interest on Education loan is allowed as deduction under section 80E
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 30 July 2016
Loan is taken for the purpose of pursuing his own higher education or higher education of his/her relative i.e. spouse and any child
Deduction is available for a maximum 8 years or till the interest is paid ,whichever is earlier
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 01 August 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.
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 01 August 2016
Only Interest part is allowed in Edu loan.
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 01 August 2016
Not agree with taxtechie
The income tax benefit can only be claimed on interest part of the loan. The principal part does not qualify for tax benefit.
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