04 February 2009
I have taken bank loan for higher education of my son out of which his fee was paid. I want to claim deduction u/s. 80-C for tution fee and deduction of interest on bank loan u/s. 80-E. Pl advise is it possible. The concerned officer argues that the deduction u/s. 80-C for tution fee is not admissible it would be allowed to son at time of repayment of bank loan. Pl advise.
05 February 2009
As per section 80C you may take deduction of tuition fees whether at the time of admission or otherwise to any university/ college/ edcational institution in india for full time education. Under section 80E you can claim interest payment as deduction but following conditons has to be fulfill 1. loan taken from financial institution i.e a banking co. or notified financial institute or an approved charitable institutes 2. loan was taken for the purpose of pursuing higher edcation ( full time studies for any graduate or post graduate course of engineering (including technology/ architecture), medicine, managment or post graduate course in applied sciences or pure science including mathematics and statistics.
05 February 2009
Meenakshi has explained the provisions correctly. But as explained by her, This is to be ensure that Higher Education is provided in India only. Secondly, on the basis of the given facts, it can be said that AO can not deny the deduction on the basis that it shall be available to student at the time of repayment only. On the plain reading of both sections, it can be said that An individual can get deduction for his/her children under both the sections. So, you can claim the deductions.
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