Interest deduction on education loan
vasu sharma (2 Points)
23 February 2021
please let me know how much deduction will get on educationloan interest paid to bank.
vasu sharma (2 Points)
23 February 2021
Fatema S. Mansawala
(Chartered Accountant)
(30 Points)
Replied 23 February 2021
There is no limit for the interest deduction on educational loan.
The deduction of interest can be availed for 8 years once the repayment starts.
The interest deduction cannot be claimed after 8 years if the repayment is still not completed.
CA Sapna Ghelani
(Chartered Accountant)
(7550 Points)
Replied 25 February 2021
The deduction is allowed of the total interest paid during the financial year. There is no limit on the maximum amount that is allowed as deduction. One should obtain a certificate from bank. Such certificate should diffrenciate the principal and the interest portion of the education loan paid during the financial year. The total interest paid will be allowed as a deduction. No Tax benefit is allowed for the principal repayment.
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