Siddharth Singh (Consulatant) (25 Points)
13 September 2012
I took an education loan in April 2010. My moratorium period ends on 30th October 2012. Till date an interest of of around 2 Laks has accumulated which I am planning to pay before end of moratorium period. Will I get tax benefit on this entire interest or only on the interest accumulated for current year (2011-12) ?
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 13 September 2012
You can take the benifit of entire Interest which includes the interest in relation to the moratorium period also.
The section sas "any amount of interest paid during the year" and defines initial assessment year to mean the relevant assessment year from which the assessee starts paying the interest on loan.
In case moratorium is there on the loan, the first interest is paid by the assessee as soon as the moratorium period ends which includes the interest of the moratorium period also.
Hence, it is duly allowed.!!
- Ashish
8802999731
CAclubindia
