The amount in respect paid on loan borrowed from any financial institution or any approved charitable institution is eligible for deduction under Sec. 80E of the Income Tax Act, 1961, the loan being taken for the purpose of higher eduction. There is no limit on the interest amount. Deduction is allowed for initial year, i.e. when the individual starts making interest payment and
immediately succeeding 7 years or until the interest is paid, whichever is earlier. Deduction available only to Individual not to HUF or other type of Assessee. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
immediately succeeding 7 years or until the interest is paid, whichever is earlier. Deduction available only to Individual not to HUF or other type of Assessee. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
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