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Education Loan tax exemption to be claimed by co-borrower

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Akash Gupta

1 Points Posted on 30 July 2021

I have taken education loan along with my father as co-borrower.

My question is - Can my father claim exemption against the loan in section 80E as he is co-borrower in which EMIs were paid by me on monthly basis and my father transferred all that amount to me in my bank account at once during that same year.

Replies (2)

Quick Summary

This discussion clarifies whether a co-borrower can claim tax exemption on an education loan under Section 80E. The consensus is that the father, as a co-borrower, can claim the deduction for interest paid, even if the EMIs were paid by the primary borrower who received the funds. However, it's advised that EMIs be directly debited from the co-borrower's account to simplify future tax justifications.

Deepa B

Practicing Chartered Accountant

573 Points Posted on 30 July 2021

Yes. Your father can claim deduction of the interest paid on the education loan borrowed. But it's recommended to get EMI's debited from your father account directly instead of him transferring it to your account first and then you paying it monthly. Because in case any query arises in future, it will be easy to justify else it might lead to lot of confusions.