Applicability of Sec. 80E for the prescribed studies in a foreign country

[B Tayub]

Whether the benefits of Sec. 80E are available for the prescribed studies in a foreign country?

[Chethan Kumar]

Section 80E: In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education [or for the purpose of higher education of his relative]. "higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics;

[Ravi Chopra]

Yes, the purpose of granting exemption under section 80E is to enable an individual to get prescribed higher eduction.

AI Summary

Education loan interest deduction applies to prescribed higher education including foreign studies subject to loan and course criteria. Section 80E permits deduction of interest paid on a loan from a financial institution or an approved charitable institution for the purpose of pursuing higher education for the assessee or a relative; 'higher education' means full time graduate or postgraduate courses in engineering, medicine, management, or postgraduate courses in applied or pure sciences including mathematics and statistics, and respondents noted the provision's aim to enable prescribed higher education including where studies are abroad.