Deduction u/s80E

 Deduction in Respect of Interest on Loan taken for Higher Education (Section 80 E)

a) Eligibility- This deduction is allowed to an individual assessee or any relative who has taken loan for higher full time education.

b) Conditions for deduction- The assessee is entitled for deduction in that previous year in which he starts paying the interest on loan and in seven succeeding previous years or until the full amount of interest is paid (whichever is earlier).

This deduction is also available for the purpose of higher education of relatives.

c) Quantum of Deduction-This deduction is allowed to an individual in respect of interest on loan paid full amount by him in the previous year taken from any financial institution for the purpose of pursuing higher education.

Note: i) Individual, relative includes spouse, children or the students for whom the individual is legal guardian. 

ii) Higher education means engineering including architect, medical science, graduate and post graduate in management or applied science including mathematics and statistics.

Subcribe on Youtube - IGNOU SERVICE

For PDF copy of Solved Assignment

WhatsApp Us - 9113311883(Paid)