Topic: What deductions are available under income tax if I take personal loan for doing MBA?

I am currently working in a software company but considering market scenarios I now want to pursue MBA program. I intend to take a education loan for the purpose, I want to know what deduction are available under Income Tax? Is the deduction available for Principal as well as Interest repayment?

This message was edited 1 time. Last update was at 30/06/2009 09:45:21

Deduction for education loan is available under section 80E, however this deduction is available only for interest payment and not for principal repayment. The deduction is available for a maximum period of 8 years or till repayment of entire loan which ever is earlier. Loan must be taken to pursue full time course from a financial institution or recognized charitable institution. Thus you must ensure that the MBA program that you intend to pursue is not a correspondence or distance learning program.
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This message was edited 1 time. Last update was at 20/04/2009 09:30:59

deduction is available for a maximum period of 8 years or till repayment of entire loan which ever is earlier. I think direct home loan must be taken to pursue full time cyou intend to pursue is not used with an home loans..

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