I have availed education loan of 18 lakhs to do my MBA. I have graduated in March and started working in May. My monthly salary is 82000. I have moratorium period till November.If I start paying my EMI from now, interest will be compounded, so I think it is better to start my EMIs from November. The 3 months prior to Novemebr,I want to pay 60000 per month towards accrued interest so that my emi will be lowered once it starts. I would like to know if there is any fault in the above thought process. Importantly, I want to know if these 1.8 lakh I am paying towards interest before the EMI starts, is eligible for 80E benefit. Please advise.
02. "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan;
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 August 2015
Thanks for your quick response sir. I want to understand if the interest I am servicing in moratorium period i/e, for August, September, October (60000pm totalling 1.8 Lakh) is eligible for 80E benefit. My EMI as mentioned will start in November.
10 August 2015
yes. Rather the answer to your question is little bit INDIRECT.... There is nothing contrary mentioned in the ACT about the PRE EMI interest....
One good thing in your case is PRE EMI as well as regular interest are falling within the same assessment year i.e. 2016-17 which is referred to as "initial assessment year." So you can very well claim both.