I have applied for education loan in India (2006), I wanted to know if i am eligible for Inc tax benefit?
You are eligible for tax benifit upto Rs. 40,000/- for the interest that is paid not the principal, the clause is given below:
80E. Deduction in respect of repayment of loan taken for higher education.
(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 repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education, or interest on such loan: Provided that the amount which may be so deducted shall not exceed forty thousand rupees.
Source(s):
http://incometaxindia.gov.in/acts/income...
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