Section 80E ITA 1961 deducts INTEREST paid on EDUCATION LOAN:

Question

Accepted Answer

B.

1. Section 80E Income Tax Act 1961: deduction for INTEREST paid on EDUCATION LOAN:
2. (i) NO CEILING on interest amount;
3. (ii) Loan must be for higher education of (a) self; (b) spouse; (c) children; (d) any student for whom assessee is legal guardian;
4. (iii) HIGHER EDUCATION: any course pursued after Class XII (or equivalent);
5. (iv) Loan from FINANCIAL INSTITUTION (banks) or approved charitable institution;
6. (v) DURATION: up to 8 YEARS from the year in which assessee starts paying interest, OR until interest is fully paid, whichever is earlier;
7. (vi) Only INTEREST (not principal) is deductible.
8. Hence option B is correct.
_Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 80E_