Section 80e
This query is : Resolved
10 August 2011
Can the assessee claim deduction u/s 80E for loans taken to pursue higher education and such amount is paid as fees for private coaching classes. Since section 80E directs an assessee the sources from which loan should be taken but it does not direct as to how to disburse the loan taken. Please provide relevant supporting case laws.
10 August 2011
finance company (banks) does not provide loan for private coaching classes, hence the question of availing loan and 80E does not arise.
Message likes :
1 times
10 August 2011
But if the assessee takes personal loan from a financial institution and pays fees for the coaching classes then what will be the effect? since nowhere in the section it is said education loan
10 August 2011
80E is applicable for interest on education loan only, not on personal loans.
11 August 2011
But it is nowhere mentioned in the section. Can youprovide any supporting case laws
11 August 2011
1. Interest on loan is only deductible. The expert Shri U S Sharma is correct in his opinion. Loan amount is not deductible.
Further interest is deductible on payment basis and not on accrual basis.
2. The matter where the loan proceeds are to be utilised is left upon the judgement of Financial Institution, or approved charitable institution for the purpose, who extend loan facility to the borrower.
3. Definition of "Higher Study" has also been modified as-
Any course of study after Senior Secondary Exam.
4. The author himself should also refer Section 80E for better understanding of the provisions.
Further interest is deductible on payment basis and not on accrual basis.
2. The matter where the loan proceeds are to be utilised is left upon the judgement of Financial Institution, or approved charitable institution for the purpose, who extend loan facility to the borrower.
3. Definition of "Higher Study" has also been modified as-
Any course of study after Senior Secondary Exam.
4. The author himself should also refer Section 80E for better understanding of the provisions.
13 August 2011
yes. Section 80E applicable for interest on educational loan specifically taken on educational purpose. please refer sec.80E as suggested by Mr. Paras bafna
16 August 2011
I do not deny the fact that section 80E is for promoting higher education. My query is just that whether we can take personal loan and pay for classes fees which is a private commercial training institute since even that is for the purpose of education. Whether an assessee consider section 80E for that because the section does not define specifically that it cannot be paid to a coaching class it just says to pursue a recognized course.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- ITR validation error - Balance sheet is not filled
- ITR returnFY25-26
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
