My son had got loan of 20 lacs from PNB for compliting his Commercial Poilat Lincence (CPL) from reconised Australian Institution. He is working as 2nd Officer in Merchant Navy and paying regular EMI to bank from his salary from Jan.2010, earlier his wife had paid EMI from her account since May 2010. Are both of them eligible for deduction of interest paid by both individualy from their respect account for the current financial returns. I persume this benifit is available for maximum for 8 years under 80E. Plz clarity. Regards, S.S.Sharma
Hi, Taken a loan from Andhra Bank to do my Btech,the loan amount is 2.20Lmtill date the principal and intrest amount was 2.8L.I got a job ,so want to repay the amount and I want to know the terms and conditions of how the tax benefit can be used.
its well that we claim the dedution in our IT for interest paid on the loan taken for our children education and direct dedution of fees what we piad., why cant any individual who is an assese take the dedution for the education loan taken for self., for example i am 42 years doing business after my BE., if i take a loan now to make my higher education ., why cant i claim in my IT
Re: study loan of self
by harsh roongta on Feb 25, 2010 09:03 PM
You can definitely claim it as a deduction provided the loan is taken from a defined "financial institution" (broadly any bank and all other major financial institutions) or from an approved charitable institution.
ther requirement for the course to be "full time" was removed from the definition from this financial year.
Most colleges charge nominal fees for tution whereas the hostel fees and other miscellaneous expenses are far too high. This cost is far too high comparing to the cost of the child staying at home and going to college.
Re: Why hostel fees is not allowed for deduction?
by harsh roongta on Feb 25, 2010 09:07 PM
Well deduction under section 80C is not available for hostel fees paid in respect of your children. However if you take an education loan (which in most cases also covers hostel expenses) then interest paid on such a loan , as long as the course is post HSC or equivalent, will be deductible under section 80E.
What is the provision if the loan is taken by the student himself / herself and the payment is being undertaken by the student himself /herself after completion of studies?
Re: Claiming tax deduction on education loans?
by harsh roongta on Feb 25, 2010 09:09 PM
he will get deduction provided the course is post HSC or equivalent and the loan is taken from a defined financial institution and/or an approved charitable institution
Most of the Colleges or Schools dont show them as tution fee. What's the use? What i feel is law should make every transaction transperent. Then there is no need of deduction. Because enough tax is collected from the colleges and schools. Look at the volume of students coming out of the colleges and school's and the tax they avade?
Can we claim the interest part under section80E if the loan is taken from Provident fund (PF) account to finance the education of dependent children or self?
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:35 PM
The interst payment made to Provident Fund on loan for education of dependent is not eligible for deduction under Section 80E
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:33 PM
The interst payment made to Provident Fund on loan for education of dependent is not eligible for deduction under Section 80E
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:35 PM
The interst payment made to Provident Fund on loan for education of dependent is not eligible for deduction under Section 80E
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:44 PM
No. Interest paid on loan taken from Provident Fund for education of dependent is not eligible underSection 80C.
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:31 PM
Dear Santosh The interest paid for laon taken from Financial Intitutions and approved charitable institutions for education are only eligible for deduction under Section 80E. The interest payment on loan taken from provident fund is not available under Section 80e.
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:34 PM
The interst payment made to Provident Fund on loan for education of dependent is not eligible for deduction under Section 80E
Re: if loan taken from PF
by Balwant Jain on Feb 19, 2010 04:34 PM
The interst payment made to Provident Fund on loan for education of dependent is not eligible for deduction under Section 80E
Can we claim the interest part under section80E if the loan is taken from Provident fund (PF) account to finance the education of dependent children or self?
It is meaningless to say that fees paid for dependent children are exempted up to Rs 1 Lakh. What is missing is this is clubbed with other savings and in effect the benefit to tax payer is nil. In any case there will be enough of savings and the benefit due to Children fee , principle repayment of house loan...etc exemption from income are really not helping the tax payer. IT department is trying to do something which is not really helping the mass tax payers.
