Mukundha Prasad.G (CA) (60 Points)
10 December 2010
Will reschedule of Educational loan loose the 80E deduction on Interest accrued over the period?
as the same is added to principal
need reply as early as possible.
thanks in advance.
Regards
Mukund
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 11 December 2010
After rescheduling the unpaid interest becomes principal.
It can not be said that the accrued interest has been paid on rescheduling. As such non-payment of interest results into waiver of deduction on this particular part.
However, Interest will be calculated on the ENHANCED amount which is deductible U/s 80E on payment basis.
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