Vikas (Student) (129 Points)
31 August 2010One of our client's son is pursuing MBA from reputed college...He tuk a educational loan from bank on condition dat installmens will be paid after completing MBA... My question is "Can his father take deduction u/s 80C for college fees although not paid by him ?????
CA Arindam Sain
(Practice)
(308 Points)
Replied 31 August 2010
dear vikas,
as per the present Income tax act,
his father cannot get deduction U/S 80C, but his father would be entitled to get deduction once he starts repayment of loan i.e., after completion of MBA of his son as per sec. 80E, and more over only ineterst portion is eligible under this section for up to 8 A.Y.
CAclubindia
