A person is not able to get Education loan...So he is planning to get a Personal Loan solely to get used for the purpose of the higher education of his son studying abroad...Whether he will be getting the interest benefit u/s 80E? Whether it is mandatory to get education loan only for getting benefit u/s 80E? Is the nature of transaction not important, given the fact that he is ready to maintain a seperate bank a/c to prove that the loan was used solely for the purpose of higher education of his son abroad....
An early opinion on the aforesaid issue is solicited...
Thanks...
Personal Loan for Son's Education Abroad Eligible for Interest Benefits Under Section 80E if Used for Education Purposes. A person inquired whether taking a personal loan for their son's higher education abroad would qualify for interest benefits under Section 80E of the Income Tax Act, as they couldn't secure an education loan. They planned to maintain a separate bank account to demonstrate the loan's use for education. The response clarified that the loan's purpose is crucial, not its label. Therefore, as long as the loan is for educational purposes, the interest benefit under Section 80E can be claimed, even if the loan is not specifically labeled as an education loan. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
