Tax Exemption on Loan for Abroad Education U/S 80E

Whether the income tax exemption is available for the educational loan opted for higher education abroad?

All the salaried individuals and pensioners must submit their income tax final statement for the AY 2022-23, the former year 2021-2022 prior to Feb 28, 2022. The income tax final statement must be submitted prior to the related Drawing and Disbursing Officers in the case of salaried persons and Sub-Treasury Officers or Bank Managers in the case of Pensioners.

Beneath the above conditions, all of them recognize several possibilities for lowering the tax liabilities (Tax Planning and Tax Administration). Chapter VIA presents various deductions along with Section 80C deduction. At the same time, the concerned question is whether the income tax exemption is available for the educational loan opted towards the goal of higher education abroad? Beneath the paragraphs provides an analysis of the related clauses.

1. Sec 80 E meets with Deduction towards the interest on loan taken for higher education.
2. Under sec 80E of the income tax act, 1961, one would avail the interest on the higher educational loan opted for the goal of you or relatives of yours. The loan could be taken from the mentioned institutions.
   • a. Banks
   • b. Financial Institutions
   • c. Approved Charitable Institutions

3. The deduction would be availed for 8 years or until the interest is furnished by the taxpayers in full, whichever is earlier.
4. What is meant by the higher education course under section 80E?
   • A course studied post to passing the senior secondary course via any acknowledged institutions of any one of the mentioned entities
   • a. Central Government
   • b. State Governments
   • c. Local Authority
   • d. Authority authorized by the Central Government or the State Governments or the Local Authority.

5. Via reading the above clause, the author specifies that the taxpayer could avail the interest of the higher educational loan chosen for higher education abroad without any threshold. There are Income Tax Appellate Tribunal (ITAT) judgments in the favour of the stand opted by the author. The same is safe by taking on the recognition certificate for your course from any recognized Indian Universities.
6. Sec 80 E is completely different from SEC 80 C.