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Raj Kishore Sharma
04-01-2011, 10:54 PM
Will some one clarify whether education loan taken from a nationalized bank in India for son's study in Master of Science (Computer Science) from an American State University is covered under Section 80-E for deduction of interest amount? If yes to what extent?

Raj Kishore Sharma

purush
12-02-2011, 05:00 PM
The deduction is for

'any amount paid by him in the previous year, out of income chargeable to tax, by way of interest on loan taken by from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relative' ,

90[( “higher education” means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;and

91[( “relative”, in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian. If you feel that your case has satisfied the conditions you can consider making the claim.





If

purush
12-02-2011, 05:12 PM
There are also other conditions with regard to the restriction on the number of years and charitable institutions and financial institutions are also defined. Consider visiting the website of the Income tax department and read the section itself to make yourself clear.