80E

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ABDUL VAJEED

ABDUL VAJEED (Querist)
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01 July 2011 Hi
Can we claim interest on education loan if education is abroad ,

Regards
ABDUL
Audit Manager

chetan soni

chetan soni (Expert)
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01 July 2011 Sec. 80E is slient about the institutions, it only specify that the education should be full time & should be for Higher education, now higher education means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics.

You can claim the interest paid on education loan even if the education is done abroad.

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Pragnesh

Pragnesh (Expert)
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01 July 2011 Dear Abdul you can claim interest amount paid on loan, condition that :

1. Interest should have been paid on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. Interest on Loan taken from relatives or friends will not be eligible for deduction under section 80E.

2. approved charitable institution means an institution specified in, or, as the case may be, an institution established for charitable purposes and [approved by the prescribed authority] under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

3. financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

4. Higher studies means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics;

5. Income tax department has added (W.e.f. A.Y. 2010-11) additional fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, Board or University recognised by the Central or State Government will also be covered under deduction in respect of interest paid on loan taken for higher education.

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