Please Help: Tax ,Deduction u/s 80 E
Posted Date : 23-Oct-2011 , 12:19:02 pm | Posted By:
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Allowed for interest,whether for part time education or Full time education or for both.??? |
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 Answer by: Ashish Karundia |
| Dear Arjun,
The nature of educational courses for which the interest on educational loans can be claimed as deduction has also been relaxed significantly. Earlier the phrase "higher education" was defined to mean "full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics". This was changed by the Finance (No.2) Act 2009 with effect from 1.4.2010 to mean 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. This is as wide as possible. The CBDT Circular explaining this change says that "with the objective of fostering human capital formation in the country, the provisions of section 80E of the Income-tax Act have been amended by substituting clause (c) of sub-section (3) so as to extend its scope to cover all fields of studies (including vocational studies) 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 authorized by the Central Government or State Government or local authority to do so. Thus education loans taken for part time courses, vocational courses, distance education courses are also eligible for deduction under Section 80E subject to fulfilment of the other conditions.
Therefore, interest for full time as well as part time education is eligible for deduction u/s 80E.
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| Posted By : |
23-Oct-2011, 08:00:16 |
| Thanx you so much...!!! Sir |
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