Tax benefit - interest on education loan

[Rahul Bagaria]

My query is on Education loan:- Wife and husband both had applied for the education loan jointly which was sanctioned by the bank in joint name.Husband is studying after utilising the loan money.Wife being the joint applicant is paying the interest money and some principle amount. Can she claim the tax benefit as she is paying the money.

[CAGOPALJI AGRAWAL]

She can claim the interest payment (applicable from the assessment year 2008-09)

[Ravi Chopra]

Yes, the provisions of Section 80E as amended allowed the benefit of deduction in the hands of wife for loan taken towards higher eduction of her husband.

AI Summary

Education loan interest deduction allowed to a joint applicant who pays interest for a spouse's higher education. A joint education-loan applicant who pays the interest may claim the education-loan interest deduction for a loan used for the spouse's higher education; in the described scenario the wife as joint applicant who paid interest is entitled to the deduction, with advisers indicating availability from the stated assessment year.