80C

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karan (Querist)
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18 August 2010 Dear Friends,

if Mr.A has taken a educational loan for his daughter, and he pays interest for the same loan. the loan amount is used to pay the tuition Fees

my query is can he claim excemption for both interest paid and tuition Fees from his taxable income

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 August 2010 yES, HE CAN CLAIM EXEMPTIN FOR BOTH
INTERST PAID ON EDUCATION LOAN WILL BE ALLOWED U/S 80E.
TUTION FEE DEUDCTION WILL BE ALLOWED U/S 80 C.

karan

karan (Querist)
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18 August 2010 But the Fees is paid by Bank from Loan alloted to his daughter

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 August 2010 agreed... you can claim the both.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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18 August 2010 YES BOTH DEDUCTION WILL BE AVAIBLE. FROM A.Y. 2010-11 EVEN IF THE LOAN IS TAKEN FOR RELATIVE. DEDUCTION U/S 80E WILL BE AVAILABLE.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 August 2010 The loan should have in the name of the individual only...

In your case the 80E benefit will not be allowed as the loan is in the name of the daughter.

You can only claim the benefit for tuition fee under 80C

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 August 2010 the provision says :

Loan should be in the name of Individual: - Deductions on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.

karan

karan (Querist)
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18 August 2010 Education loan is taken in his daughter's name and she will be paying it after completion of studies

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 August 2010 In the given question "Mr.A has taken a educational loan for his daughter"

So he can claim bot the deduction u/s 80C & 80E respectively.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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18 August 2010 Tax benefit will start only when the repayment of loan starts & as I said the loan should be in the individual's name only to claim the benefit.

since the daughter will be repaying the loan.

No benefit... neither 80C nor 80E.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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18 August 2010 THEN NO DEDUCTION WILL BE AVAILABLE.U/S 80C AND 80E

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 August 2010 "Education loan is taken in his daughter's name and she will be paying it after completion of studies"

In such scenario no deduction can be claimed.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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18 August 2010 its doesn't matter who is paying but make sure for whom the bank is paying to get benefit of both section.
yes you can claim 80C (principle) & 80E (interest)whatever it doesn't matter..

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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18 August 2010 "yes you can claim 80C (principle) & 80E (interest)whatever it doesn't matter.."

Murtaza Ji question is not about home loan.
You are mentioning principal and interest amount?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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18 August 2010 FOR DETAILED ANALAYSIS AND ALL ABOUT DEDUCTION OF EDUCATION LOAN U/S 80 E.
PLEASE CLICK ON BELOW LINK

https://www.taxguru.in/income-tax/deduction-under-section-80e-for-interest-on-education-loan-taken-for-self-and-relatives.html

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