I had joined distance learning course of MBA from ICFAI. I had paid its fee by taking loan of 50000. Can I get deduction of this loan payment. i suspect about it as it is not full time course and so may not get deduction for loan taken for higher education. ca.purvishah@yahoo.co.in
The deduction of interest on study loan is provided under section 80E of the I T Act. The said section in subsection 1 states
“80E. (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 relative
The word “higher education “ is defined under subsection 3 of Section 80E. The said definition is as follows:
(c)higher education means 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;
The intention of law maker,s, therefore is clear to provide relief for full time course. Your course appears to be part time, therefore , shall not qualify for the relief u/s 80E of the I T Act.
About taxworry
Dear Sir,
Thanks for your immediate response,
quite useful tips, but if the section details of Income Tax for the particular Clause is available
that will be more helpful to us to show our Employer for necessary action while calculating salary for the particular month.