Income tax rebate on education loan query

Tax queries 764 views 2 replies

Arnab Dutta

Merchandising Admin.Manager

26 Points Joined June 2009

I have a question on Education loan..

I am paying my education loan(My Father is a Guarranter) for last 2 years. Me and My father both are working (Father in a Govt Office and I am in a Private company). Both of us want to get tax rebate for total interest paid for financial Year 2011-2012. For that, I am planning to submit the loan documents for months April'11-September'11, and want to show that I have paid this period and want the Tax Rebate, on amount paid (interest portion) for this period. The rest Oct'11-Mar'12, will be declared by my father and apply for Tax rebate.

Will it be possible or can we face any problem in this case in future??? Please advice.

Replies (2)

Bhavin Bhadra

Job

174 Points Joined March 2010

Loan should be in the name of the individual :

Deductions on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.

It means that if loan is taken by your father then only he can claim deduction for payment of interest and if its in your name then you can claim deduction.

Arnab Dutta

Merchandising Admin.Manager

26 Points Joined June 2009

Hi Bhavin, the loan account is on my name and my father is guarranter..last year my father applied for tax rebate and he got d tax deduction..i think that rule was amended from last year..Now plz advice on that...