Query : Taxable Income

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Tushar Kulkarni

21 Points Posted on 10 May 2007

Hi,
I am working in a Pvt Company. I have few queries regarding Taxable Income.
I am repaying my education loan, Rs 42075 p.a. out of which Rs. 20175 is interest component. I am paying Rs 30000 p.a. as housing rent. Also my medical expenses will be Rs 5000 p.a.
I want to know the tax tratement to these items. Are Edu loan repayment and medical expense inculded under Investment of Rs 100000 under Chapter VIII or these items are separate than this investment.

Replies (4)

Srinu

30 Points Posted on 10 May 2007

Hi,

You can claim both interest and principle portion of your education loan. With regard to medical expenses, you are eligible to claim upto 15,000 in ayear.

Both education loan and medical exp. are not included in 1,00,000 savings amount.

I hope your question is answered.

Thanks,
Srinu

Akhil

97 Points Posted on 10 May 2007

The One says:

Correct me if I am wrong but isn't education loan repayment restricted to a maximum of Rs.40000 per annum u/s80E. Do let me know.....

Srinu

30 Points Posted on 10 May 2007

Hi,

Upto 2005-06 AY limit of Rs.40,000/- exited. As per 2006-07 ammendment you can claim unlimited amount but restricted to interest portion only.

Thanks,
Srinu

Akhil

97 Points Posted on 10 May 2007

The One says:

Thanks Srinu.

So as I interpret it interest upto any amount can be claimed as deduction but principal repayment is not considered as part of deduction.

Also please let me know how I can get hold of the latest Amendments please.

If you have it in e-format do email it to me at: emailid1729 @ yahoo.co.in