Interest on loan for education – Deduction
JANUARY 25, 2017
By Romi Agrawal, IOCL, Haldia
DEDUCTION U/S 80E ALSO BE ALLOWED FOR INTEREST ON LOAN TAKEN FOR HIGHER EDUCATION FROM EMPLOYER:-
TO promote higher education in the country, Deduction U/S 80E have been introduced from AY 1995-96. By virtue of said section, the assesse (individual) have been allowed deduction for interest on loan taken for prescribed higher education of Self/Spouse/Child from any Banking Company/Notified Financial Institution/Approved Charitable Institution. In India, a number of MNCs are providing loan to its employees for higher education of their children at concessional rate of interest.
This amount of interest is not allowed as deduction U/S 80E since loan was not taken from any Banking Company/Notified Financial Institution/Approved Charitable Institution. It is our request to FM for amendment in Section 80E and allowing deduction for interest on loan taken for prescribed higher education of Self/Spouse/Child from employer also.
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