Where an individual repays a sum of Rs. 30,000 towards principal and Rs. 14,000
as interest in respect of loan taken from a bank for pursuing eligible higher
studies, the deduction allowable under section 80E is Rs. 44,000.
Answers
Answer:
(i) During the financial year 2018-19, Mr. Amit paid interest on loan availed by him
for his son's higher education. His son is already employed in a firm. Mr. Amit
will get the deduction under section 80E.
(ii) Subscription to notified bonds of NABARD would qualify for deduction under
section 80C. (iii) In order to be eligible to claim deduction under section 80C, investment/
contribution/subscription etc. in eligible or approved modes, should be made
from out of income chargeable to tax.
(iv) Where an individual repays a sum of Rs. 30,000 towards principal and Rs. 14,000
as interest in respect of loan taken from a bank for pursuing eligible higher
studies, the deduction allowable under section 80E is Rs. 44,000. (v) Mrs. Sheela, widow of Mr. Satish (who was an employee of M/s. XYZ Ltd.),
received Rs. 7 lakhs on 1.5.2018, being amount standing to the credit of Mr.
Satish in his NPS Account, in respect of which deduction has been allowed under
section 80CCD to Mr. Satish in the earlier previous years. Such amount received
by her as a nominee on closure of the account is deemed to be her income for
A.Y.2019-20.
(vi) Mr. Vishal, a Central Government employee, contributed Rs. 50,000 towards Tier
Explanation: