News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Direct Tax »
 Notification NO. 85/2019 Central Board Of Direct Taxes
 Income Tax Department to launch instant PAN feature online
 Didn't receive income tax refund? You must validate your bank account. Here's a step-wise process
 You can claim this even when your income doesn't exceed Rs 5 lakh exemption limit
  How the proposed new Direct Tax Code could cut your income tax
 Income Tax Return: Why you need to file your ITR on time
  How to file ITR-1 online
  All the new details required in income tax return forms for FY18-19
 India mulls personal income tax relief while scrapping some exemptions
 ITR Filing: Filing return? First, know this IMPORTANT THING through income tax calculator
 How the proposed new Direct Tax Code could cut your income tax

Here's how your expenditure on education can fetch you tax benefit
February, 06th 2019

Rising cost of education has made many individuals opt for education loans. If you have availed of an education loan, then the interest you pay is eligible for deduction under section 80E of the Income Tax Act.

Expenditure on education can fetch you tax breaks in two ways.

School Fee

Payment made towards the tuition fee is eligible for tax deduction under section 80C of the Income Tax Act. A parent can enjoy the tax deduction for tuition fee paid to any school, college or university. A payment up to Rs 1.5 lakh per financial year is allowed as eligible expense under the said section along with other eligible investments such as contribution towards employee provident fund, public provident fund, life insurance premium, national saving certificate, equity linked saving scheme.

However, this deduction is allowed for the payment of tuition fees only. You won’t get any tax break for other payments made to school on account of development fund, capitation fee, building fund or under any other head or even payments made to private tuition or coaching classes. You can avail of this benefit only for two dependent children. The educational institution to which the fee is paid, must be based in India and the course should be a full time course.

Rising cost of education has made many individuals opt for education loans. If you have availed of an education loan, then the interest you pay is eligible for deduction under section 80E of the Income Tax Act. The education loan can be taken for yourself, your spouse or your children. You can also avail of an education loan for whom you are a legal guardian and claim tax benefits on the interest paid.

The education loan must be taken from a financial institution or a charitable institution. The interest can be claimed for eight years in a row or the loan repayment term whichever is lower, starting from the year in which the repayment begins.

You have to get a certificate from the lender specifying the amount of interest you paid in a financial year. There is no cap on the interest amount you can claim under this section. However, there is no benefit for the principal repaid by you to the lender.

In an education loan, parent and the student are co-borrowers. As this section allows an individual to claim tax benefit for both self and the children, the best idea would be to claim tax deduction by the parent in initial years. And when the child takes up the job, the child can claim deduction. At any given moment of time, only one person can claim tax benefit.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multimedia Presentations Multimedia Solutions 3D Solutions Corporate Presentations Business Presentations Multimedia Presentation India M

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions