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80e provisions

monica (article assisstant) (44 Points)

23 July 2019

A person and his son took an education loan jointly.. Both are sharing the payment of the emi. Who can avail the 80E deduction?

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4 Replies

Pikan Maity (50 Points)
Replied 23 July 2019

if Son is a minor than parents can take all the benefits only interest amount u/s 80E no specified limit for deduction.. no deduction for principal amount.. If son is a major and file income tax return than both r taken benefits ..otherwise parents can get benefits for 8 assement year or till the interest is to be paid which ever is earlier.

monica (article assisstant) (44 Points)
Replied 24 July 2019

So, can they take benefit of interest deduction in equal proportion?

Suresh Thiyagarajan (Student) (3986 Points)
Replied 24 July 2019

1. According to sec 80E interest paid by the assessee for the loan taken for higher education for him or for his relative will be allowed as a deduction for 8 AY from the year in which the interest is paid by the assessee.
2. Unlike other section 80E does not put restriction to avail loan for the assesses relative. Hence, sec 80E deduction will be allowed even if the loan is availed for relative.
3. In your case interest on the loan paid by son will surely be a qualified deduction. With respect to the interest portion of the EMI paid by his father will also qualify for deduction provided the loan was taken jointly and interest is actually paid father from his own pocket.
4. In a nutshell, the respective amount of interest paid by each person on education loan will be allowed as deduction u/s 80E.
Please correct me if the above interpretation has an alternative view.