Deduction in respect of loan taken for foreign studies

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nilesh (Querist)
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17 July 2010 where loan has been taken for studying MS in US for son.. is the whole instalment of repayment of loan deductible? does it come under Sec 80E?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2010 No. For Loan taken for studies taken of Indian Institutions courses only eligible for deduction u/s.80E

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 July 2010 There is no condition that the higher education should be in India only.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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17 July 2010 Thanks for correction sir, Agree your view. But there is condition a Instituions approved by the State Govts. or Central Govt

Since Institution approved by the Govt even outside India., Deduction is allowed

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CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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17 July 2010 Deduction will be only interst , not for instalment amount.

Deduction amount: – The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.

Click on below link for details analysis on deduction u/s 80E

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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