Education loan deduction

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Hello,

i am working as software enginner. for my graduation i took education loan of 4 lac rupee. in this loan co-applicant is my mother. She paid interest amount during 4 year of my graduation period and claim tax benefit under section 80E.

My current income tax slab is 10% and my mother comes under tax slab of 20-30%.

So, can my mother pay the loan amount and take tax benefit???

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

28 July 2013 Interest paid is the benefit.
.
Loan repayment is not a benefit.
.
Decide on the above basis, when to re-pay the loan.
.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Paras ji,

I want know that i am also salaried person and my mother is too salaried person. and if
started the loan repayment from my account i could only claim 10 % benefit and if my mother pay the loan amount she will take 20-30% tax benefit on interest payment of that loan.

For example:

My Salary-400000/-
investment under 80c - 100000/-
education loan interest benefit:-50000/-
non taxable income -200000/-
total tax payable:-5000/-

if in above example if education loan benefit not included then my tax liablity will be 10000/-

My mother Salary 900000/-
investment under 80c - 100000/-
education loan interest benefit:-50000/-
non taxable income -200000/-

income tax benefit with education loan benefit:-80000/-
income tax benefit without education loan benefit:-90000/-

Conclusion is if my mother take benefit of interest she will pay 10000/- less in her income tax

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

28 July 2013 Thanks for the clarification.
.
A reply emerges from the query and the manner in which question is being raised.

.
Now the only question remains here is that -

Why such question has arisen in your mind -
though your mother was regularly claiming the interest benefit ?
Please reply if you feel it reasonable.
.
Reply to your query-
.
Your mother can claim the interest benefit
as she had claimed in the preceding years.
She is a co-applicant and the loan agreement is not having any specification as regards who has taken how much.
.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Thanks for speedy response.

During my graduation period (4 years) She claimed interest benefit as told by bank offical.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2013 Bank official advised us that my mother fetch more tax benefit on payment of interest payment of my education loan.