neha gupta (ca ) (188 Points)
25 March 2010pls help me...this is a special case...
A person took a loan for providing b.tech education to his son and claim intrest deduction u/s 80E.
now he also want to claim deduction of tution fees which he is paid throurh that loan amount u/s 80C
can he claim that deduction??
Its my humble request if u r 100% sure thn only rly..coz its a practical case..and i need ur help....
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 25 March 2010
Look interest is a different case while the payment for tution fees is different... So both are allowed. I have not seen any practical cases, but logically its definately allowed....
Rohini
(Trainee at IDPL(Central Govt Co))
(152 Points)
Replied 25 March 2010
I m 101% sure he can claim deduction u/s 80C & also 80E
u/s 80C - the principal amt equal to tution fee only
u/s 80E - the Interest amt , paid out of his income chargeable to tax
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 25 March 2010
Rohini
(Trainee at IDPL(Central Govt Co))
(152 Points)
Replied 25 March 2010
| Originally posted by : AYUSH AGRAWAL | ||
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Yes, Logically Its Right to Claim.......... I Too Not Seen Any Case Regarding This Matter....... |
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U r in CA Final dont say that ,,,,after a yr or 2 u will have cases like this
he can claim deduction
as my dad got it & a few clients of my office
Rohini
(Trainee at IDPL(Central Govt Co))
(152 Points)
Replied 25 March 2010
| Originally posted by : D н ! я σ ĵ | ||
|
|
Look interest is a different case while the payment for tution fees is different... So both are allowed. I have not seen any practical cases, but logically its definately allowed.... |
|
U r in CA Final dont say that ,,,,after a yr or 2 u will have cases like this
he can claim deduction
as my dad got it & a few clients of my office
neha gupta
(ca )
(188 Points)
Replied 25 March 2010
hey this is practical case n this is case of ma dad..........
Richa
(B.Com, CA Final Stdnt)
(113 Points)
Replied 25 March 2010
ya Neha m agree with Rohini, u claim deduction of priciple amt. bt extent to tuition fee.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 25 March 2010
Deduction allowable of fees paid u/s 80C as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education
Amir
(Learner)
(4016 Points)
Replied 25 March 2010
Dear Neha,
Both can be claimed no doubt about it
I think what is causing confusion in this case is -
Earlier when there was Rebate u/s 88 in place of Deduction u/s 80C - there used to be a condition - that following payments should be made -
out of his income chargeable to tax
Now in light of this condition it was not possible to claim Rebate based on payments made out of Loan
But this condition was omitted by the Finance Act, 2002, w.e.f. 1-4-2003 (You can still find these words written in Sec 80E but no more in Sec 80C)
Further -
Sec 80E allows benefit of INTEREST only whereas PAYMENT OF TUITION FEE will constitue the PRINCIPAL portion.
So there is no double benefit which assessee is availing by claiming both deductions..
CA Shiv
(Business Controller)
(2987 Points)
Replied 25 March 2010
Yes neha... can claim both the deduction.....Agree with amir.....
Mostly same like Income from house property... One section provided dedution of Interest while other provides deduction of principal.....
So easily can claim it....
karthikeyan.v
(Chartered Accountant)
(523 Points)
Replied 25 March 2010
dear neha
both are different sections, they are not mutually exclusive, the interest can be claimed under sec 80 E and the fees can be claimed under sec 80 C, no doubt in it, be 100000% sure about it
regards
karthi
ganesh bhandari
(B.Com Final C.A. Final CS Article Clerk )
(239 Points)
Replied 25 March 2010
You can Claim both..
As such no case law on this matter also..
Pankaj
(Student)
(60 Points)
Replied 25 March 2010
The interest on loan taken is eligible for 80E
And Portion of Tution fees alone paid will be eligible for Sec 80 C
And there is no provision as such that both deductions cannot be claimed
100% Surity
CAclubindia
