The Hindu Business Line : No sops for funding son's education

The deduction under Section 80E which is available for repayment of a loan along with interest on such loan for the purpose of higher education is available for full time studies for any graduate or post-graduate course in engineering, medicine, management or for a post-graduate course in applied science or pure science, including mathematics and statistics.

Deduction under Section 80E is available only if the following conditions are satisfied:

The assessee is an individual;

The assessee has, out of his income chargeable to tax, repaid a loan or the interest thereon, taken from any financial institution or approved charitable institution;

The loan has been taken for the purpose of pursuing the assessee's higher education.

The deduction shall be the amount repaid by way of principal and interest but shall not exceed Rs 40,000 per annum. The deduction is available for eight assessment years commencing from the assessment year relevant to the previous year in which the assessee starts repaying the loan or the interest thereon.

From the foregoing it is clear that the person pursuing the higher education should have repaid the amount. In the instant case, the son is pursuing the higher education while the father is making the repayment and, therefore, the father cannot utilise the deduction under Section 80E.

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