tax claim on repayment of education loan

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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)

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.

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)...

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