Education loan Interest

Sir Can i pay educational loan interest for my two son . It is exempted by Income Tax.

Yogesh

asked Feb 04 '11 at 01:06 by yogesh551 1223


As per section 80E of income tax act, deduction is available for amount paid towards interest payment of education loan with follwoing conditions:

  1. Loan should have been taken for higher studies of Self, Spouse, Children or of the student of whom individual is legal Guardian.
  2. Loan should only have been taken for Higher studies, full-time programs, graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics; or vocational studies.
  3. Whole amount of interest paid is eligible for deduction and there is no upper limit on this deduction. But there is no benefit available on the repayment of principal amount of the loan.
  4. This deduction is available in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier. If total repayment tenure exceeds eight years, you canont claim deductions beyond eight years.
  5. Eduction loan should have been taken by Assessee. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.
  6. There is no condition that the course should be in India.

answered Feb 04 '11 at 13:43 by pankaj 5.2k320

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YES it is exepted in Section 80E of Income Tax Act.

Yogesh

answered Feb 04 '11 at 01:10 by yogesh551 1223

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Asked: Feb 04 '11 at 01:06

Seen: 2,125 times

Last updated: Feb 04 '11 at 13:43