INCOME TAX DEDUCTION UNDER SECTION 80E FOR INTEREST ON EDUCATION
70DEDUCTION UNDER SECTION 80E
There is a tax benefit in india for the loan taken on higher education. There is a benefit on the interest of banks to get the tax benefit. So if you are going to take a loan on education keep in mind these factors to avail the tax benefits:-
1-These deduction is available only to individual and not for H.U.F.
2-Deduction amount-The deduction amount is only the interest paid on the loan of higher studies and there is no limit. You can get tax benefit on entire amount of interest paid but not the PRINCIPAL.
3-Deduction only will be available if interest is paid out of tax chargable income.
4-Deduction only be available if the loan is taken from financial institutes or approved charitable institutes. Loan taken by family or relatives not included.
5-Loan should be taken for higher studies means any full time course of graduate or post graduate course. After +2 full time course would be eligible for it.
6-Deduction available only to self or dependant like spouse & children.From A.Y 2010-11
Relative also includes student for whom the individual is the legal guardian
7. Deduction period: - Deduction 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 is paid by the assessee in full, whichever is earlier.The maximum tenure to get the tax benefit is 8 years.
8-The study can be anywhere in the world and not neccessary to be in india.
Thanks
NITIN
FREEWORKING LATEST UPDATES
- What is Advance Tax- Pay On time Advance Tax
Advance Tax:- As the name suggests tax paid in advance means to advance tax. If the tax paid amount is more than 10000 rupees than the tax should be paid in previous year itself and not to be deferred to... - 2 days ago
- Challan Form 280,281,282,283 Free Excel Utility Download
CHALLAN 280- this challan is used for depositing self assessment tax,advance tax and tax demand on regular assessment. So this challan is important as well as in regular use for assessment. Challan... - 7 days ago
- Clubbing of Income- How income can be Clubbed
Clubbing of Income: - Some assesses distribute and accumulate wealth on the names of various family members for cutting the tax burden. Income tax department has one instrument to club the income and... - 2 weeks ago
- Top Ten Temples of Lord Shiva
OM NAMAH SHIVAY, JAI BHOLE KI As you know the Lord Shiva has a great palace in hindu. Lord Shiva has many temples but it is amazing to see these temples in their faith as which is in top ten list. So i am... - 3 weeks ago
- How to Avoid TDS( Tax Deduction on Source) on Fixed Deposit
Fixed Deposit( F.D)- Fixed Deposit are the fund on which the interest is paid for the fixed term & the funds canât be withdrawn before maturity, & if the fund is withdrawn before maturity giving notice,... - 3 weeks ago
- TDS Rate Chart for Financial Year 2009-10 After Budget
The Finance Minister made some changes in the rates of TDS/TCS in the annual budget which will be applicable from 1st October 2009 for the financial year 2009-10.The new rates of TDS has created a lot of... - 3 weeks ago
- What is ACES (Automation of Central Excise & Service Tax)
ACES Automation of Central Excise & Service Tax. It is a web based software for assesses & the department which make automatic different processes of CENTRAL EXCISE & THE SERVICE TAX Department like filing... - 4 weeks ago
- First Discussion Paper on GST( Goods & Service tax) released
The Empowered Committee of State Finance Minister has released GST (Goods & Service tax) First discussion paper. GST is the combition of Goods tax like VAT, CST, Excise & service tax. GST is coming to India... - 5 weeks ago
PrintShare it! — Rate it: up down flag this hub
JATIN says:
3 months ago
REALLY A GOOD GUIDENCE, THAT ANYONE CAN UNDERSTAND WELL.