tax claim on repayment of education loan

Tax queries 672 views 2 replies

P N Boolchandani

Executive Engineer

26 Points Posted on 31 December 2009

An education loan (in instalments) was taken in the name of my SON & ME for his higher education (MS), from the month of July 2007 (from Bank of Baroda). Now the education of my son has been completed & he is searching for job in USA.

In the meantime I have started repaying of loan & have already deposited lumpsum of Rs 60,000/- from my own savings & also planning to start, repayment of monthly instalments of loan, from Jan 2010.

My questions are,

1) am I eligible to take benefit of income tax for repayment of loan under section 80E?.

2) I am expecting my son’s employment in near future, can I still enjoy the tax benefit even after employment of my son in USA?

Replies (2)

Rakesh

Asst Manager

209 Points Posted on 31 December 2009

1) You can get benefit of u/s 80 E n you ll entitled to get benefit of Interest amount only n its for 8 years only..... no principal amount is eligible for deduction.

2) answer of second question i m not too sure....but u may get entitled to get benefit even if your son get employment in US.

Amir

Learner

4016 Points Posted on 31 December 2009

Hi Mr. Boolchandani,

Brother Rakesh is rite that u will get the Benefit of interest for a MAXIMUM period of 8 years begining with the year in which repayment starts.

SECONDLY, if ur Son gets employment either in US or India or elsewhere, U CAN CONTINUE CLAIMING Benefit u/s 80E PROVIDED THE RPAYMENT IS MADE BY YOU (and not by ur son)...