higher education loan

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Prem (Querist)
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22 August 2008 HI,

PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also

Regards

Amit

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 It is also included in the meaning of Education Loan

Prem

Prem (Querist)
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22 August 2008 HI,

PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also

Regards

Amit

Prem

Prem (Querist)
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22 August 2008 we are asking for tax cumputation is principal amt is exempted or not if yes kindly provide the section.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Section 80E

DEDUCTION IN RESPECT OF REPAYMENT OF LOAN TAKEN FOR HIGHER EDUCATION.

(1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan :

Provided that the amount which may be so deducted shall not exceed twenty-five thousand rupees.

(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until loan referred to in sub-section (1) together with interest thereon is paid by the assessee in full, whichever is earlier.

(3) For the purposes of this section, - (a) "Approved charitable institution" means an institution specified in, or, as the case may be, an institution established for charitable purposes and notified by the Central Government under clause (23C) of section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G;

(b) "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;

(c) "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 1002f ;

(d) "Initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts repaying the loan or interest thereon.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Any Further Clarifications?

Prem

Prem (Querist)
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22 August 2008 we have also having this detail this is not confirming the concept principal amt.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan -- Means the Principal Amount

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 The Word Repayment of Loan - refers to Principal Amount

Prem

Prem (Querist)
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22 August 2008 the principal amt of education loan is exempted or not as far as my knoweldge only interest is exempted.

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Yes You are Right Now I got the Correct Source Wait

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 https://law.incometaxindia.gov.in/TaxmannDit/Displaypage/dpage1.aspx?md=2&typ=cn&yr=2008&chp=194

It Says Only Interest

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Click 80E in That

Prem

Prem (Querist)
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22 August 2008 thanks but it is not clear

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Tell Me What is Not Clear

Prem

Prem (Querist)
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22 August 2008 i want to know that principal for higher education loan is included in exemption

Prem

Prem (Querist)
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22 August 2008 HI,

PLease let me know that is principal for higher education loan is included in exemption or not if yes please provide section also

Regards

prem

CHEZHIYAN

CHEZHIYAN (Expert)
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22 August 2008 Principal Paid on Eductional Loan is not Exempt..

i Discussed with my Audit Mananager

Srinath

Srinath (Expert)
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24 August 2008 Under Section 80E its only interest that is allowed as deduction and not principal+interest which was earlier. Hope it clarifies

Ranjit Ahluwalia

Ranjit Ahluwalia (Expert)
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25 August 2008 Yes Check section 80E

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