Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Section 80E

Saurabh Jain (62 Points)

19 January 2018

Is interest on interest allowed under section 80E as deduction?

Reply
Follow
Share

9 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14601 Points)
Replied 19 January 2018

Deduction in respect of interest on loan taken for higher education is allowed under section 80 E . So if you paid interest on loan taken for higher edcuation in the previous is allowed as deduction .

Upgrade to CAclubindia Pro. Subscribe Now!

Saurabh Jain (62 Points)
Replied 19 January 2018

I am asking if interest on the interest amount for late payment would be allowed u/s 80E

sambu sushma (13 Points)
Replied 19 January 2018

No, not allowed
under section 80 E any interest on loan taken for higher education is allowed and not interest on interest for late payment

1 Like

vinay kumar (178 Points)
Replied 19 January 2018

no it is not allowed as deduction
.it is not a interest .since it is a penalty.It is pure finance transaction

1 Like

Manish Kumar (8 Points)
Replied 19 January 2018

Further 80E can be claimed by individual himself....

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

ram madhan (74 Points)
Replied 27 January 2018

What is maximum limit for this one under 80E ??

prasad Nilugal ( GST Practitioner & Accounts ) (14601 Points)
Replied 28 January 2018

Allow as deductions under section 80E - Any amount paid in the previous year only by way of interest on loan taken by him form financial institution for the purpose of pursuing his higher edcution .