Claim Deduction of Interest on Education Loan

Deduction of Interest on Education LoanUnder the provision of Section 80E of the Income Tax Act, 1961 allows deduction to an individual for payment of interest on loan taken by him from Financial Institution, banks or notified Financial Institution (HDFC Ltd.) or approved charitable institution for persuing Higher Education. The amount of deduction is restricted to a maximum of 8 consecutive years starting from the assessment year in which the first repayment of interest on education loan is made. The deduction shall be available whether the loan is taken for higher education of individual himself or for the purpose of his spouse and children or the student for whom the individual is the legal guardian. Here, “ Higher Education ” means any course of study persued after passing the Senior Secondary Examination or its equivalent from any school, Board or University recognized by the Central Govt. or State Govt. or Local Authority or by any other authority authorized by the Central Govt. or State Govt. or Local Authority to do so. We at Taxmantra aim to free you from all tax worries so that you can concentrate fully on your core expertise and optimize your career potential. We at Taxmantra provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning.

Leave a Reply

Your email address will not be published.