I am working professional in software company. I am doing part-time MBA for which I have paid a fees of 80,000/- during current financial year of 2006-07.For that I took a personal loan & not education loan from ICICI bank. Will I get any tax benefit? komalfriends@rediffmail.com
There is nothing in Section 80E of the I T Act which states that you have to take educational loan from banks. Rather the word used in section is LOAN and used for the purpose of higher education. Section 80 E 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.
- (2) The deduction specified in sub-section (1) 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 referred to in sub-section (1) is paid by the assessee in full, whichever is earlier.
- (3) For the purposes of this section,
- (a) ……..;
- (b) financial institution means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
- (c) ……
- (d) initial assessment year means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.
Therefore , if you have evidence that the said personal loan was utilised by you for the higher eduction pursued by you.
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