I have taken education loan for my son, for which i have to pay an interest of Rs1300 per month i.e. Rs15600 per annum.
Will i get deduction of Rs15600 from my salary income?
what type of benefit from the above amount will i get?
whether i get rebate on paying the principle amount of the above loan under section 80c of income tax, please suggest.
yours faithfully
15th September 2007 From India

Rapolu HS

Dear Jha,
As per Invome Tax Act I think you are not eligible for deduction under section 80E. The section says "In computing the total income of an assessee, being an individual, there shall be deducted, in accoordance 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 loan taken by him from any financial instituion or any approved charitable institution for the purpose of pursuing his higher eduction".
In the section specified " his higher eduction" in your case you have not taken any loan for the purpose". If you need further clarification and it is also advised to consult any Chartered Accountant for further clarifications.
Rapolu HS
18th September 2007 From India, Hyderabad
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