Question

Mr Vala has taken an
education loan for his
education for the purpose of
doing full time MBA of
Rs. 10,00,000. Annual
repayment of loan during
the previous year 2018-19 is
RS. 1,00,000. Annual payment
of interest on loan during
the previous year 2018-19 is
Rs.60.000. What will be the
amount of deduction
available u/s 80E for the
assessment year 2019-20?​

Answer 1

Answer:

Yes an amount of ₹60,000 can be claimed as deduction under section 80E in the assessment year 2019-20; as it is the interest on the educational loan.(Provided the loan repayment being made is not after 8 years of taking the loan; as deduction is allowed for only upto 8 years)

And besides it, the educational loan repayment amount also can be claimed as deduction under section 80C, subject to a maximum of ₹1.5L as a whole under this section.