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Q.

My daughter has opted for an educational loan of Rs.10,00,000/- from centurion Bank of Punjab for post graduation course in English. I am standing as a cogurrantor to this loan . Will I be allowed any income tax benifits by way of interest or principal amount repayment?

Tags: daughter, loan, educational loan of rs
Asked by asis sil, 17 Jan '08 11:08 am
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Answers (4)

1.

Even you deserved the BA, but i cant as i have to chose the one who is better than the best
Answered by Anand Agarwal, 05 Sep '09 07:28 pm

 
  
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2.

80E. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education 74a[or for the purpose of higher education of his relative]. (2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to in sub-section (1) is paid by the assessee in full, whichever is earlier. (3) For the purposes of this section, (a) approved charitable institution means an institution specified in, or, as the case may be, an institution established for charitable purposes and 74b[notified ...more
Answered by ramachandra mahale, 17 Jan '08 11:14 am

 
  
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3.

Your daugther will be allowed a deduction for interest paid from her income from the year she starts paying interest for that year and succeeding 7 years. This deduction is allowed under section 80E of the Indian Income Tax Act 1961 for post graduate courses and others higher studies in the field of science, engineering and mathematical studies.
Answered by Kashyapi, 17 Jan '08 11:13 am

 
  
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4.

No tax deduction benefits will be applicable only for your daughter who has availed the loan
Answered by Shyam, 17 Jan '08 11:11 am

 
  
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