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Exemption u/s 80e

vijendra (article trainee) (229 Points)

18 July 2016

is education loan either jointly(wid my son) r individually obtained from nationalised bank to study at abroad M.Tech r similar degree for my son. Is principal n interest paid on above loan is eligible to exemption u/s 80C / 80E respectively r under any other section. thanks in adv.

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CMA Poornima Madhava (CMA) (13097 Points)
Replied 18 July 2016

Only interest portion is eligible for deduction u/s 80E
No deduction is available under u/s 80C

vijendra (article trainee) (229 Points)
Replied 18 July 2016

Originally posted by : Poornima Madhava

Only interest portion is eligible for deduction u/s 80E
No deduction is available under u/s 80C

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 19 July 2016

Only interest paid on an educational loan is allowed as deduction u/s. 80E of The Income Tax Act, 1961, out of his/her income chargeable to tax i.e. Deduction will be allowed only when actual interest is paid. There is no cap on the amount of interest on which one can claim tax Exemption: your entire interest outgo on an education loan is eligible for deduction.

Loan should be taken by individual for pursuing higher education of self, spouse or his /her children’s or for the student of whom you are legal guardian. Hence parents are also eligible to claim deduction of interest paid by them on loan taken for their children’s education

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 19 July 2016

But you can calim deduction for tution fees u/s 80-C.

CMA Poornima Madhava (CMA) (13097 Points)
Replied 19 July 2016

@ Vishal: 80C deduction in respect of tuition fee is available only for payments to educational institutions/universities etc situated in India https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx

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