Deduction for higher education section 80E

Deduction for higher education section 80E

According to Income Tax Act,1961 any person can claim deduction for entire amount of interest paid on a loan taken for pursuing higher education

condition for claiming deduction

1 The individual must have taken a loan from any financial institution or any approved charitable institution

2 The deduction is available only to individual assessee

3. The loan must have been taken for pursuing higher education . Such education must be o assessee himself or any of his relatives.

4. The deduction shall be allowed only in respect of any sum paid by him in the previous year by way of

interest on such loan

5.Such amount should be paid out of his income chargeable to tax.

 Higher  education

Higher education mean any course of study pursued after passing the senior secondary examination or it equivalent

Deduction shall be allowed for eight assessment years starting from the assessment year in which the assessee starts paying the interest on loan or until the interest thereon is paid by the assessee in full

whichever is earlier.

Quantum of deduction:

The amount paid during previous year towards interest.

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