I have taken an education loan for my son, for which I have to pay an interest of Rs. 1300 per month, i.e., Rs. 15600 per annum. Will I get a deduction of Rs. 15600 from my salary income? What type of benefit from the above amount will I get? Whether I get a rebate on paying the principal amount of the above loan under section 80C of income tax, please suggest.
Yours faithfully P.C. Jha
Email: peeceejhaa@yahoo.co.in
From India
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Yours faithfully P.C. Jha
Email: peeceejhaa@yahoo.co.in
From India
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Dear Jha,
As per Income Tax Act, I think you are not eligible for a deduction under section 80E. The section says, "In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on a loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education."
In the section specified "his higher education," in your case, you have not taken any loan for this purpose. If you need further clarification, it is advised to consult a Chartered Accountant for further clarifications.
Regards, Rapolu HS
From India, Hyderabad
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7As per Income Tax Act, I think you are not eligible for a deduction under section 80E. The section says, "In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on a loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education."
In the section specified "his higher education," in your case, you have not taken any loan for this purpose. If you need further clarification, it is advised to consult a Chartered Accountant for further clarifications.
Regards, Rapolu HS
From India, Hyderabad
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