Dear Sir
My father had taken educational loan for my engineering degree course in year 2003 . I completed my engineering degree in year June 2007 and i got job immediately in July 2007. After joining the job i started paying EMI of educational loan . Till may-2013 i paid the EMI but never claimed tax deduction on interest paid for educational loan. Claiming tax deduction under 80 E came to my knowledge recently.
- My question is can i claim tax deduction for interest paid in fin year 2008-09,09-10,10-11,11-12,12-13 in this financial year .
- What is the ceiling for the interest claim
- Also i visited the income tax india site and did not understand the clause (2) below, can i get the clarification . I think its answer to my question no. 1. is it?
FROM INCOME TAX INDIA SITE
80E. Clause (1) In computing the total income of an assesee, 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 18[or for the purpose of higher education of his relative].
clause(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.
Regards,
AMIT R SAWANT