Get tax benefits on education loans for higher education abroad?

As per Section 80E, anyone taking loan from any financial institution or approved charitable institution for pursuing higher education, whether in India or abroad, can claim deduction equivalent to the entire amount of interest paid on the borrowed sum for a consecutive period of eight years, beginning from the assessment year in which the individual has started paying the interest on loan or until the assessment year in which the interest is paid by the individual in full, whichever is earlier. The loan can be taken for the education of self, spouse, children or the student for whom the individual is the legal guardian.

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e-Book on Income Tax Deductions u/s. 80C to 80U for A.Y. 2017-18

There are so many Income Tax Deductions which are allowed to be claimed by an Salaried Employee, Individual or HUF. Though this a few Income Tax Deductions are very useful, which can be easily claimed and are helpful in reducing the tax burden. 

What do you mean by Tax Deductions ?

Tax deduction helps to reducing your tax-liabilities. It decreases your overall tax liabilities and save tax and grow savings. However, depending on the type of tax deduction you claim, the amount of deduction varies. You can claim tax deduction for amounts spent in tuition fees, medical expenses and charitable contributions. Also, you can invest in various schemes such as life insurance plans, retirement savings schemes, and national savings schemes etc. to get tax deductions. The government of India offers tax exemptions for various expenses incurred in different activities to encourage individuals and commercial institutions take part in activities having social benefits.

A number of day-to-day expenditures qualify for deductions, with information about them being crucial to help us save money. Tax deduction can be claimed on money spent for education, medical expenses, charitable contributions, investments in insurance, retirement schemes, etc. These deductions have been put in place to encourage members of the society to participate in certain useful activities, helping everyone involved in the process.

The following e-Book helps you to know more about Income Tax Deductions u/s. 80C to 80U.

e-Book about Income Tax Deducation u/s. 80C to 80U

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Income Tax Deductions Under Section 80E.

An education loan can not only fund your higher studies but also help save tax. The interest paid on the education loan can be claimed as deduction, as per Section 80E of the Income Tax Act, 1961.

Top 10 Things to Know:

The income tax benefit can only be claimed on interest part of the loan. The principal part does not qualify for tax benefit.

However, the entire interest part of the loans repaid can be deducted while calculating your taxable income. There is no upper limit for grant of deduction in respect of interest on loan for higher education. Also, there is no upper limit of the rate of interest which will be allowed as a deduction.

An individual can avail of tax benefit if he/she has taken an education loan to support higher studies of self, spouse, children or for the student of he/she is the legal guardian. So education loan taken for siblings or other relatives don't qualify for Section 80E benefit. 

Remember, deduction can be claimed by an individual only if the loan has been taken in his/her name.

This special deduction is also allowed even for education loan availed for study abroad. 

This tax deduction is allowed only if the education loan has been availed from any bank or notified financial institution or any approved charitable institution. So no deduction under Section 80E would be available if the education loan is taken from employer, family or friends.

Under the earlier provisions, the deduction on education loan was available only for pursuing 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.  However, the list has been expanded to even include vocational studies now. It now covers "all fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized 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".  

The deduction on education can be claimed only when you start the repayment and is available up to eight years, or until the payment of interest in full, whichever is earlier. This means, if you repay the loan within, say, five years, you can claim deduction only till such period. 

Most education loans come with a moratorium period during which you opt not to service the loan. This period is usually until one year after the completion of the course or six months after the student gets a job, whichever is earlier. Accrued interest during the moratorium gets added to the principal and repayment in EMIs gets fixed. If you opt to pay interest during the moratorium period, it gets included while calculating the time limit of eight years. 

To avail tax benefits on education loan, inform your company's HR/accounts department so that less TDS is deducted from your salary. Else, you can claim it by filing tax returns.

source: www.profit.ndtv.com

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Deduction u/s. 80C for Tuition, School or Education Fees for Asstt. Year 2014-15

Deduction u/s. 80C for tuition or school fees paid for education of children.

Who is Eligible: Deduction for tuition fees u/s. 80c of the Income Tax Act1961 is available to Individual Assessee and is not available to HUF. But the payment of tuition fee for full time course must be for for any two children of individual. Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?

Answer:- None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.

The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of an individual.

The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee.

• All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify for deduction.

You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.

Answer: Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.

Answer: Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.

Answer: yes ,they both can claim deduction for 100000 each subject to they have actually paid same amount .If husband has paid 1.50lac and

wife has paid 50000 then husband can claim 100000 and wife can claim 50000.

Answer: He can claim full 2000 Rs in assessment year 2012-13 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.

Answer: No,late fees is not eligible for deduction.

xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4);

“(4) The persons referred to in sub-section (2) shall be the following, namely:

(a) ………………….

(b) …………………..

(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.

Allowability of pre-nursery, play school and nursery class fees: - Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007). he can claim tuition fees paid of only two children’s. The Deduction is available for any two children.

Maximum Child: Deduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then 

Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim deduction for 2 children each.

Fees paid for spouse: Deduction is not available for tuition fees paid for studies of spouse.

Maximum Limit: Deduction for tuition Fees is available up to Rs.100000. Please Note that aggregate amount of deduction 

Deduction available on payment basis: - Deduction under this section is available on payment basis. Fees may be related to any period. 

For example feed paid for April 2009 if Paid in March 2009 will be eligible for deduction u/s. 80C in A.Y. 2009-10.

Deduction not available for part time course:- The deduction is available for Full Time courses only. In our opinion no deduction is available for part time or distance learning courses.

Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :- The fees should be paid to university, college, school or other educational institution. 

No deduction available for fees paid for private tuition’s , coaching courses for admission in professional courses or any other type of courses 

Location of University,college,school or other educational institution:University,college,school or other educational institution must be situated in India though it can be affiliated to any foreign institutes.

Not allowable Expenses:-

1. Development fees or donation not eligible.

2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.

4. Term Fees is not eligible for deduction.

5. No deduction for part time or distance learning courses.

5) This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.

6. no rebate for private tuition.

7. Building fund or any donation etc not allowed.

Note: Above list is not exhaustive.

3. Late fees is not eligible for deduction.

Summary of Above Provisions

1) Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1 lakh for education expenses incurred for one’s children.

2) Each parent can claim the deduction for the tuition fees paid for up to two children each, thereby covering a maximum of four children in a family.

3) This deduction is available to the parent who has made the payment, to the extent of thetuition fee actually paid or Rs1 lakh, whichever is lower.

4) The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.

6) Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.

FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C

Q. Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?

Q. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

Answer: Yes he can. As clause (c ) of subsection 4 of Section 80C only speaks of children’s ofIndividual. Section 80C is silent on legality of child and it does not say that child should be legal child.

Clause xvii of section 80C

Subsection 4 of Section 80C

Question:- Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.

Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, 

Question:- Can Mother claim the benefit of tuition fees paid for his son/daughter.

Question:- If a couple have four children, can they both claim fees for two children each?

Question:- If a Couple has one child and paid a fees of 200000 rs can they both claim tuition fess 100000 each ?

Question:- Ram has paid tuition fees for his child 2000/- in February 2011 relates to period march to June 2011 ,how much amount he can claim deduction in assessment year 2012-03?

Question:- Is Late fees paid with tuition fees is eligible for deduction ?

EXTRACT OF SECTION 80C

It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.

Answer: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claiming deduction under clause (xvii) of section 80C.

Q. I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?

Answer: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.

Q. Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?

Answer: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.

Answer: Yes both of you can claim deduction u/s 80C up to a maximum of Rs. 1,00,000 each. You can claim deduction up to 100000/- and your wife can claim deduction of Rs. 70,000/-.

Q. I am currently working and studying. If I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?

Answer: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.

Q. I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?

Answer: Payment of tuition fee up to Rs 1 lakh can be claimed as deduction u/s 80C of the I T Act. 

Q. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim deduction?

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What are the Tax Benefits u/s. 80EE w.e.f. 01.04.2014 ?

First time individual home-buyers can get tax deduction on interest of home loan, under newly inserted section 80EE of the Income Tax Act, applicable for assessment year 2014-15. This is in addition to tax rebate on interest payment of home loan, under section 24.

Eligibility for 80EE rebate:

This rebate on home loan interest is applicable only for home loans satisfying the following conditions:

1. Loan is sanctioned by a financial institution or housing finance company between 1st April 2013 and 31st March 2014.
2. Loan amount is Rs. 25 lakhs or less and cost of residential house is Rs. 40 lakhs or less

This should be the only house owned by the taxpayer at the time of sanction.

Maximum deduction limit under 80EE:

Up to Rs. 1 lakh can be claimed towards interest payable on home loan in the financial year 2013-14. If interest payable in this year is less than Rs. 1 lakh then the balance can be claimed in the following year.

For instance if interest payable in FY 2013-14 is Rs. 75,000 then tax rebate on remaining Rs. 25,000 can be claimed in FY 2014-15.

The amount claimed under 80EE cannot be claimed for tax rebate under any other sections in any year.

The deduction under sub-section shall be subject to the following conditions, namely:—

1. the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2013 and ending on the 31st day of March, 2014;
2. the amount of loan sanctioned for acquisition of the residential house property does not exceed twenty-five lakh rupees;
3. the value of the residential house property does not exceed forty lakh rupees;
4. the assessee does not own any residential house property on the date of sanction of the loan.

Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Act for the same or any other assessment year.

For the purposes of this section,—

• "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies including any bank or banking institution referred to in section 51 of that Act or a housing finance company;
• "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.

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Deductions of Higher Education Loan u/s. 80E for Asstt. Year 2014-15.

Section 80E allows deduction in respect of payment of interest on loan taken from any financial institution or any approved charitable institution for higher education for the purpose of pursuing his higher education or for the purpose of higher education of his spouse or his children or the student for whom he is the legal guardian.

The deduction shall be allowed in computing the total income for the Financial year in which the employee starts paying the interest on the loan taken and immediately succeeding seven Financial years or until the Financial year in which the interest is paid in full by the employee, whichever is earlier.  For the purpose of this section -

• "approved charitable institution" means an institution established for charitable purposes and approved by the prescribed authority section 10(23C), or an institution referred to in section 80G(2)(a);
• "financial institution" means a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
• "higher education” means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized 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.

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Taxfree perquisites for Assessment Year 2013-14 for Salaried Employee.

It is general demand of salaried employee (Taxpayee) regarding calculations of Income Tax for the Assessment Year 2013-14 to Deposit Savings, Demand of Tax etc. Thus the taxpayee go through Chaperter-VIA to save tax and project to invest for growing Deposit Savings. In accordance with this  Salaried Employee (Taxpayee) searches Tax free perquisites.  In Fin. year 2012-13 and Assessment Year 2013-14 Taxfree perquisites for Salaried Employee who deducted Tax as TDS monthly from his salary are as follows:

1. Medical Facility or Medical Reimbursement:

• Medical Facility :- The value of any medical treatment provided to an employee or any member of his family in a hospital, dispensary or a nursing home maintained by the employee shall be a tax free perquisite.
• Medical Reimbursement : Any sum paid by the employer in respect of any expenditure incurred by the employee on his medicaltreatment or treatment of any member of his family subject to maximum of Rs. 15,000 in the previous year.

2. Recreational Facilities : Any recreational facility provided to a group of employees (not being restricted to a select few employees) by the employer is not taxable.

3. Training of Employees: Any expenditure incurred by the employer, for providing training to the employees or by way of payment of fees of refresher courses attended by the employees.

4. Use of health club, sports and similar facilities provided uniformly to all employees by the employer.

5. Expenses on Telephone, including a mobile phone, actually incurred on behalf on the employee by the employer.

6. Employer’s Contribution: Employer’s contribution to superannuation fund of the employee or provided such contribution does not exceed Rs. 1,00,000 per employee per year.

7. The premium paid by the employer on an accident policy taken out by it in respect of the employee would not be a perquisite. [CIT v Lala Shri Dhar (1972) 84 ITR 192 (Del) and CIT v Vinay Bharat Ram (1981) 129 ITR 128 (Del)].

8. Motor car provided by the employer to the employee or expenses incurred by the employer in connection with motor car belonging to the employee (for purposes other than exclusively for personal purposes) shall be a tax free perquisite in the hands of the employee.

9. Amount given by the employer of assessee to assessee’s child as scholarship is exempt under section 10(16). [CIT v B.L. Garg (2006) 155 Taxman 189 (All)]

10. Food and Beverages provided to Employees: The following shall be a tax free perquisite in the hands of the employees-

• free food and non-alcoholic beverages provided by the employer to his employees during working hours:

(a) at office or business premises or
(b) through paid vouchers which are not transferable and usable only at eating joints.
Provided the value of such meal is upto Rs. 50 per meal.
(ii) Any tea or snacks provided during working hours.
(iii) Free food and non-alcoholic beverages during working hours provided in a remote area
or offshore installation.
11. Loans to Employees : - In the following cases the value of benefit to the assessee resulting from the provision of interest free or concessional loan shall be nil :
(a) where the amount of loans are petty, no exceeding in the aggregate Rs. 20000;
(b) Loans made available for medical treatment in respect of disceases specified in rule 3A of the Income-tax Rules. However, the exemption so provided shall not apply to so much of the loan as has been reimbursed to the employee under any medical insurance scheme.

12. Perquisites provided outside India : Perquisites provided by the Government to its employees, who are citizens of india for rendering services outside India, are not taxable. [Section 10(7)].

13. Rent Free House/Conveyance Facility: Rent free official residence and conveyance facilities provided to a Judge of the Supreme Court/High Court is not a taxable perquisite.

14. Specified Perquisite allowed to certain Persons:
(a) Specified perquisites allowed to Judges of the Supreme Court, Chief Election Commissioner, Election Commissioner.
(b) Chairman or retired Chairman, member or a retired member of U.P. S.C.
are not taxable perquisites.

15. Residence to officials of Parliament etc. :- The Rent Free furnished residence (including maintenance thereof) provided to an officer of the Parliament a Union Minister or Leader of Opposition in Parliament, is not a taxable perquisite.

16. Accommodation in a Remote Area : - The accommodation provided by the employer shall be a tax free perquisite if the accommodation is provided to an employee working at mining site or an onshore oil exploration site or a project execution site, or a dam site or a power generation site or an offshore site which -
(a) being of a temporary nature and having plinth area not exceeding 800 square feet, is located not less than eight kilometres away from the local limits of any municipality or a cantonment board; or
(b) is located in a remote area.

17. Educational Facility for Children of the Employee: where the educational institution itself is maintained and owned by the employer and free educational facilities are provided to the children of the employee or where such free educational facilities are provided in any institution by reason of his being in employment of that employer, there shall be no perquisite value if the cost of such education or the value of such benefit per child does not exceed Rs. 1,000 p.m.

18. Use by the employee or any member of his household of laptops and computers belonging to the employer or hired by him.

19. Leave Travel Connection will be discussed in detail later.

20. Tax paid by the Employer on Non-Monetary Perquisites : Tax paid by the employer on non-monetary perquisites of the employee shall be exempt in the hands of the employee. [Section 10(10CC)]

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Can Applicable section 50C of Income Tax to Builders ?

Section 50C of income tax act is not applicable to a builder as his assets as plots and buildings are his stock in trade and not capital assets.

IT : Section 50C not applicable to sale of plots by a builder since plots are his stock-in-trade and not capital assets

• Section 50C uses the word 'capital asset'; for applicability of section 50C one of the essential requirements is that land or buildings sold should be capital asset; stock in trade has been excluded from the definition of capital asset by sec. 2(14).
• Investment in purchase and sale of plots by a builder who is indulged in selling buildings is ancillary and incidental to his business activity; 'stock-in-trade' includes all such chattels as are required for the purposes of being sold or let to hire on a person's trade; [See also • Addl.CIT v. Puttu Coal (P.) Ltd. (1983) 140 ITR 740 (Bom) where the assessee was money lender, who purchased a ship in satisfaction of his major portion of outstanding loan and the ship was considered as stock in trade of the assessee's money lending business].
• In the present case, assessee has treated plots of land as stock in trade in its balance sheet. - [2012] 20 taxmann.com 381 (Allahabad)
  

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Effect on Income Tax by Section 80C Deduction and its guidelines.

Section 80C of income tax act:- In order to encourage savings, the government gives tax breaks on certain financial products under Section 80C of the Income Tax Act. Investments made under such schemes are referred to as 80C investments. Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:


Provident Fund & Voluntary Provident Fund
Provident Fund is deducted directly from your salary by your employer. The deducted amount goes into a retirement account along with your employer’s contribution. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You can also contribute additional amount through voluntary contributions (VPF). The current rate of interest is 8.5% per annum and interest earned is tax-free.

Public Provident Fund
An account can be opened with a nationalized bank or Post office. The current rate of interest is 8%, which is tax-free and the maturity period is 15 years. The minimum amount of contribution is Rs 500 and the maximum is Rs 70,000.

National Savings Certificate
These are 6-year small-savings instrument, where the rate of interest is 8% and is compounded half-yearly. The interest accrued every year is liable to tax but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.

Equity-Linked Savings Scheme
Mutual funds offer you specially-created tax saving funds called ELSS. These schemes invest your money in equities and hence, return is not guaranteed. Money invested here is locked for a period of three years.

Life Insurance Premiums
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can be included in section 80C deduction. If you are paying premium for more than one insurance policy, all the premiums can be included. Besides this, investments in unit-linked insurance plans (ULIPs) that offer life insurance with benefits of equity investments are also eligible for deduction under Section 80C.

Home Loan Principal Repayment
Your EMI consists of two components, namely principal and interest. The principal component of the EMI qualifies for deduction under Section 80C.

Stamp Duty and Registration Charges For Home
The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C. However, this can be done only in the year in the year of purchase of the house.

Five-Year Bank fixed deposits
Tax-saving fixed deposits (FDs) of scheduled banks with a tenure of five years are also entitled for section 80C deduction.

Others
Apart from the above, things like children’s education expenses that can be claimed as deductions under Section 80C. However, you need receipts to claim the same

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Deduction under section 80E in respect of interest on loan for higher education.

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.

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Benefits of Higher Education Loan U/s. 80E while filing of Income Tax Annual Return.

It is most important to know that the Deductions u/s. 80E on Higher Education Loan as per Income Tax Act in respect of Repayment of Interest on Higher Education Loan, which is taken by the Taxpayee to their children for Higher Education. The conditions of deductions u/s. 80E are as follows:

1. In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan, taken by him 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 relatives(spouse or children). In simple words deduction is available for Repayment of Interest on Loan .No deduction is available for deduction on repayment of principal.Further there is no upper limit under this section.
2. The deduction specified above shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to above is paid in full by the assessee , whichever is earlier.
   

What are the purpose?

• "approved charitable institution" means an institution established for charitable purposes and approved by the prescribed authority under clause (2C) of section 10, or, an institution referred to in clause (a) of sub-section (2) of Section 80G.
• "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
• "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized 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;
  
• "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.
• 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.
  

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