If You have taken education loan for the higher education of your children or of your spouce or of your own, it can save your income tax. Section 80E of Income Tax Act provides for deduction of 100% interest amount on education loan taken from any financial institution or approved charitable institution, taken for one's own, or spouce's or children's higher education.
This deduction is available to an individual assessee only. Before A.Y. 2006-07 section 80E also provided for deduction of the principal amount of education loan, repaid. But w.e.f A.Y 2006-07 deduction of only interest amount is available u/s 80E.
This deduction is available for maximum period of 8 consecutive assessment years beginning from the assessment year in which the assessee starts paying the interest on loan. W.E.F A.Y 2010-11 the deduction u/s 80E shall also be available to the legal guardian for the child's education.
It is to be noted that there is no maximum limit of deduction u/s 80E w.e.f A.Y 2006-07.The entire payment of interest will be allowed as deduction during 8 consecutive assessment years beginning from the year in which payment of interest has begun.
W.e.f A.Y 2010-11 higher education means any cource of study pursued after passing the senior secondary examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or Local authority to do so.
Share |
This deduction is available to an individual assessee only. Before A.Y. 2006-07 section 80E also provided for deduction of the principal amount of education loan, repaid. But w.e.f A.Y 2006-07 deduction of only interest amount is available u/s 80E.
This deduction is available for maximum period of 8 consecutive assessment years beginning from the assessment year in which the assessee starts paying the interest on loan. W.E.F A.Y 2010-11 the deduction u/s 80E shall also be available to the legal guardian for the child's education.
It is to be noted that there is no maximum limit of deduction u/s 80E w.e.f A.Y 2006-07.The entire payment of interest will be allowed as deduction during 8 consecutive assessment years beginning from the year in which payment of interest has begun.
W.e.f A.Y 2010-11 higher education means any cource of study pursued after passing the senior secondary examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or Local authority to do so.
Share |
Posts
Education loan helps the poor students alot to continue there higher studies. It currently become the need for the education loans in Asian country in order that Asian country can get the foremost meriting students World Health Organization doesnot contine thanks to the economic drawback. Thanks for providing this information...