If you have taken these loans, then the full interest is available in this rule tax rebate

One such rule is tax rebate, if anyone has taken loan for higher education.

New Delhi: Time to fill income tax is in progress. Last date is July 31. Some people file online ITRs themselves, then some people with the help of someone. But it is important, some information about the rules of the ITR. If you are filing ITR returns on your own, then it is necessary that the rules related to the tax exemption will be known. One such rule is tax rebate, if anyone has taken loan for higher education.

If a person has taken loan from the bank, financial institution or an approved charity for higher education of himself or his close relative, then the amount given as interest on this will be deducted from that person's taxable amount.

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In this regard, the Minister of State for Finance SS Palanimanickam had told in a written reply to the Rajya Sabha last year that Section 80-E of the Income Tax Act, 1961 has a clear provision for this effect. He had earlier said that under these provisions, tax deduction was done only for full time studies in any undergraduate or postgraduate course in pure science such as Applied Science or Mathematics and Statistics, no undergraduate or postgraduate courses in engineering, medicine and management. But now this facility has been given to the diploma courses to be done after the twelfth.

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He further said that this tax concessions can be claimed on the basis of the amount spent on repaying interest on loans for higher education by a person. For this, the government has not kept any separate funds. This gives the government the amount of revenue that has to be lost, it is simply mentioned. As such, according to the Acquisition Budget 2012-13, due to deduction under section 80-E, the government has lost Rs 138 crore in revenues during the year 2010-11.

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Explain that under Section 80-E of the Income Tax Act, individual taxpayers can get discounts from the amount of interest paid on Education Loan. This discount can be obtained from the taxable income of the taxpayer i.e. if the taxpayer's income tax is not eligible then the benefit of this exemption can not be taken.

They will get discounts: Only individual taxpayers can avail tax rebates on Education Loan, which means that the HUF or other category taxpayers can not take advantage of this discount.

For whom the loan taken is taxable: The taxpayer takes loans for higher education for himself, spouse or his children, then tax exemption under Section 80-E of the Income Tax Act is exempted. The benefit of tax rebate comes to the person who has taken a loan.

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For information, let us know that under Section 80-E, all the education has been extended by expanding the scope of education from the assessment year 2010-11, after which a senior secondary or equivalent is available to any school, board or university, Recognized by the state government, should be eclipsed. In this regard, the Union Minister gave a statement in the House.

Where the loan can be taken for exemption: any bank, financial institution or any charitable institute, to get tax exemption under Section 80-E of the Income-tax Rule, which is in Section 10 (23-C) or Section 80- It is necessary to be taken only after being authorized under G (2) (A).

Absolute interest discounts: The exemption of full interest paid on loans taken for education can be obtained. The special thing is that there is no exemption on the payment of original money in this loan.

According to the rules, one year to 7 years of interest, or until interest is paid, whichever is earlier, the tax exemption can be obtained till that year.

 

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