Deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 Hello friends,
i am having a query regarding the loan taken for tution (private classes) for child can the interest on the same can be claimed under income tax.... if i am salaried person and if in case,if i am self employed.
fro e.g.,
if i am taking a CA coaching classes and for which i hav taken education loan to pay off fees of ICAI as well as classes e.g.80000 to classes and 22000 to institute.In this case how much amt will be eligible for deduction(interest) under which section.
reply ...

thanks ..............

Rupesh Jain

Rupesh Jain (Expert)
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17 June 2013 education loan deducton only form full time course and intt will be deductiable
principle can not be deductable

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Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2013 plz answer my new query ...
reply.
thanks.......

Guest

Guest (Expert)

17 June 2013 In case you are a salaried man, then only one section allows you deduction of interest i.e 80 E, but it provides deduction on education loan, an education should be full time. Tuition is not a full time education course.

If you are self employed then two section provides you deduction.

Section 80 E --- Again not applicable.
Section 36(1)iii --- But it provides deduction of interest related to business, and it is not business expenditure, again no deduction.

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Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2013 if this is education loan then which is goin to allowable for deuction i.e. interest. are you sayin that only n only icai's fees only wil be allowable for interest deduction.

Guest

Guest (Expert)

18 June 2013 Loan taken for education, means paying institution fees only.
yes if you have taken loan to pay icai fees, then the loan amount utilized in paying institutional fees, the interest on such payment is allowed as deduction only us/ 80E