Dear all,
Tax saved is money saved. Therefore tax planning is a must for all the tax payers. One of the best way to save tax for those tax payers who have children, who are either just entering college or going to take professional degree course, must think about not investing his own savings in education. Rather he should take the educational loan which is easily available these days. Here is a guide that will assist you to know tax benefits on education loans. These benefits help you to reduce the overall cost of your education loan.
The deduction under section 80E is available to an individual if following conditions are satisfied:
1. Deduction amount: – The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.
2. Interest should have been paid on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. Interest on Loan taken from relatives or friends will not be eligible for deduction under section 80E.
3. Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian.
4. Education loan taken for siblings (brother / sister) or other relatives (in-laws, nephew, niece, etc.) would not qualify for section 80E benefit.
Initial assessment year means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.
5. Loan should be in the name of Individual: - Deductions on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.
6. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
7. Repayments of education loan NOT covered under Section 80C.
8. There is no condition that the course should be in India
From India, Gurgaon
49Tax saved is money saved. Therefore tax planning is a must for all the tax payers. One of the best way to save tax for those tax payers who have children, who are either just entering college or going to take professional degree course, must think about not investing his own savings in education. Rather he should take the educational loan which is easily available these days. Here is a guide that will assist you to know tax benefits on education loans. These benefits help you to reduce the overall cost of your education loan.
The deduction under section 80E is available to an individual if following conditions are satisfied:
1. Deduction amount: – The amount of interest paid is eligible for deduction and moreover there is no cap on the amount to be deducted. You can deduct the entire interest amount from your taxable income. However there is no benefit available on the repayment of principal amount of the loan.
2. Interest should have been paid on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education. Interest on Loan taken from relatives or friends will not be eligible for deduction under section 80E.
3. Loan should have been taken for the purpose of pursuing higher studies of Individual , Spouse, Children of Individual or of the student of whom individual is legal Guardian.
4. Education loan taken for siblings (brother / sister) or other relatives (in-laws, nephew, niece, etc.) would not qualify for section 80E benefit.
Initial assessment year means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.
5. Loan should be in the name of Individual: - Deductions on education loan can only be claimed if the loan has been taken in your own name. If your parents, spouse or sibling has taken the loan for your studies, then you are not entitled to get tax benefit.
6. The loan includes not only tuition or college fees but also other incidental expenses for pursuing such studies like hostel charges, transport charges etc.
7. Repayments of education loan NOT covered under Section 80C.
8. There is no condition that the course should be in India
From India, Gurgaon
Mr.Jagadish.
Thanks for your information,
Getting Education loan is now very easy nowadays. But Our Govt.making this facility , only for outstanding student who are unable to continue their studies due to lack of money.
and also.still some of the Banks are having some limits in providing Edu.Loan like "no. of seats in colleges" .. if Guy who are being as tax payer means why he want to get loan for her children. suppose if he do this means. definitely one poor will loose his/her turn there in that place. but it s hidden there....
Plz. consider the Poor and bright them up by simple sacrifice ....
Note: (My Exp.) i just lost my dream college , course due to lack of money, also not proper suuorts from Bank,even i was a topper in schooling..
My fortunate i got a man as god, he gave his helping hand.. now i reached my goal..
but i am not sure that everyone will get this chance....
its my opinion....that's all..
Regards,
D.Mohan
Pro.CoOr(HR/Admin)
Flotek Engg.MP.
From India, Tiruchchirappalli
Thanks for your information,
Getting Education loan is now very easy nowadays. But Our Govt.making this facility , only for outstanding student who are unable to continue their studies due to lack of money.
and also.still some of the Banks are having some limits in providing Edu.Loan like "no. of seats in colleges" .. if Guy who are being as tax payer means why he want to get loan for her children. suppose if he do this means. definitely one poor will loose his/her turn there in that place. but it s hidden there....
Plz. consider the Poor and bright them up by simple sacrifice ....
Note: (My Exp.) i just lost my dream college , course due to lack of money, also not proper suuorts from Bank,even i was a topper in schooling..
My fortunate i got a man as god, he gave his helping hand.. now i reached my goal..
but i am not sure that everyone will get this chance....
its my opinion....that's all..
Regards,
D.Mohan
Pro.CoOr(HR/Admin)
Flotek Engg.MP.
From India, Tiruchchirappalli
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Poor can benefit from this edu loan scheme.pdf
Loan Form.doc