Latest posts for the topic "Will get any deduction under income tax for education loan?"

Will get any deduction under income tax for education loan?

AbhaySharma — GMT

I am currently working in a software company as a Software Engineer “Trainee” so far I have had a good exposure in software development, now to enhance my knowledge and to give my career a boost I want to pursue part time course in IT management, this basically is a correspondence course so that I can continue working along with the studies. To meet the cost of education I plan to take an education loan, I just want to know will I be eligible for any deduction under Income Tax Act, if yes then what shall be the amount of deduction if I take a loan of Rs.2.5 Lac.

Re:Will get any deduction under income tax for education loan?

amitgupta — GMT

Deduction for education loan is available under section 80E; however this deduction is available for interest payment on the loan taken. The deduction is available for a maximum period of 8 years or till repayment of entire loan which ever is earlier. But the loan must be taken to pursue full time course from a financial institution or recognized charitable institution. Thus you shall not be entitled to deduction under this section.
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