Section 80 E

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vignesh vaithinathan

1 Points Joined September 2019

I availed education loan of Rs.1.1 lakhs for my higher studies. Now I paid all the outstanding amount in the loan including principal and interest of total Rs.2.4 lakhs this year. then how much I claim tax exemption under 80E this year.

Replies (2)

Kapadia Pravin

17264 Points Joined December 2018

Exemption is any interest amount under 80E subject to conditions -

when loan was taken (not before 7 yrs)
Have you repaid out of your taxable income
is the loan in your name
Exemption available upon satisfying conditions

Suresh Thiyagarajan

Student

3986 Points Joined July 2018

1. According to sec 80E interest paid by the assessee for the loan taken for higher education for him or for his relative will be allowed as a deduction for 8 AY from the year in which the interest is paid by the assessee.
2. Whatever the amount paid as interest will only be allowed as deductions for 8AY from the year in which the loan was taken.
3. If you have paid the entire amount in one year, then interest to that extent will be allowed as deductions u/s 80E.
4. However, payment should have been out of income chargeable to tax. It should have been within 8 AY from the date of obtaining a loan.
5. In your case sec 80E can be claimed as deduction provided all the above conditions are satisfied.
Please correct me if the above solution has an alternative view.