education loan query
3 years ago
My education loan started in 2010 and ended in 2014 and my repayment started in 2016. During the course 2010- 2014 my parents paid interest to the education loan amount disbursed every year for tax purpose and to reduce EMI amount during repayment. From 2016 onwards i started paying EMI. I wanted to know if the interest that will be paid in EMI can be shown under tax exemption 80E during the investment declaration in my working company for the financial year 2021- 2022.
A.Dear sir,
Please consult Chartered Accountant.
Please consult Chartered Accountant.
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A.Hi,
SInce the tax exemption under 80E is allowed upto 8 years from the year you start paying the EMI, hence you can claim exemption under 80 E.
SInce the tax exemption under 80E is allowed upto 8 years from the year you start paying the EMI, hence you can claim exemption under 80 E.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
A.Hi,
Yes you can, since the exemption under 80E can only be claimed upto 8 years from the year you start to pay the EMI. The deduction allowed is the total interest part of the EMI paid during the financial year. You need to obtain a certificate from your Bank. Such certificate should segregate the principal and the interest portion of the education loan paid by you during the financial year. The total interest paid will be allowed as a deduction. No Tax benefit is allowed for the principal repayment.
Yes you can, since the exemption under 80E can only be claimed upto 8 years from the year you start to pay the EMI. The deduction allowed is the total interest part of the EMI paid during the financial year. You need to obtain a certificate from your Bank. Such certificate should segregate the principal and the interest portion of the education loan paid by you during the financial year. The total interest paid will be allowed as a deduction. No Tax benefit is allowed for the principal repayment.
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