LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

educational loan

Sudha (Accountant) (34 Points)

07 February 2010

While deducting the deductions in salary according to chapter VI A, for salaried individuals, should we take account of the repayment of educational loan or not. educational loan taken is for regular study by the individual. whether this is deductible from salary as deductions? please help me soon

Reply
Follow
Share

7 Replies

santhosh (CA) (636 Points)
Replied 07 February 2010

Yes repayment of interest for educ loan taken is deductible u/s 80e.

But loan must satisfy conditions pres in 80e

1 Like

Varun.T.K (CA Final, CS Executive) (365 Points)
Replied 07 February 2010

The gross salary received must be treated as "Income from Salary". If there is no other source of income for that individual, it becomes the gross total income. Then, Interest on loan paid for higher education purpose can be deducted as prescribed u/s 80E.

hari (audit assistant) (61 Points)
Replied 07 February 2010

For your kind attention, ONLY THE INTEREST PAID ON SUCH LOAN can be claimed as deduction u/s 80E and NOT the PRINCIPAL REPAYMENT OF THE LOAN...

Deepak.R (CA - PCC Student / Articled assistant) (177 Points)
Replied 07 February 2010

And also., the loan should be taken for studies not exclusively higher studies., and it should be taken for the purpose of pursuing his own education or education of relatives. Till AY 2009-10 Relatives means to include only spouse and child.

But it has been amended from AY 2010-11 so as to include those student for whom the tax payer / assessee is a guardian...