Scope of section 80e

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indu (Querist)
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06 September 2012 dear sir
i want to know that whether deduction u/s 80E is available in case the loan has been taken for higher studies out of india

CA Ilayaraja

CA Ilayaraja (Expert)
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06 September 2012 The course need not be pursued in India. Loans for overseas courses are also permissible for a deduction.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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06 September 2012 80E. Deduction in respect of interest on 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 interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education.
(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 the interest referred to in sub-section (1) 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 mathe-matics and statistics;
(d) “initial assessment year” means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.’.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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06 September 2012 The Condition is Loan to Be Taken From India.
Any Financial Institute, Charitable Institute.

Study AnyWhere.
No Issue.

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