Personal loan interest for education

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You cannot claim a tax deduction for interest paid on a personal loan, even if it's used for your daughter's education. However, if your daughter takes out an education loan specifically, she may be able to claim tax benefits on the interest paid.

Ganesan R

Ganesan R (Querist)
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23 March 2022 I intend to avail a personal loan and utilise the same for my daughter’s overseas education. Can I claim the interest paid on the loan as a deduction from my income under income tax

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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24 March 2022 No such deduction can be claimed on personal loan.

CA Puja Sharma

CA Puja Sharma (Expert)
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24 March 2022 No such interest deduction is allowed against a personal loan.
If your daughter takes an education loan then that can help her in tax savings

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