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

Section 80E Tax Deduction Covers Interest on Loans for Higher Education Abroad, Including Engineering and Medicine. A query was raised about the applicability of Section 80E of the Income Tax Act for studies pursued in a foreign country. One respondent explained that Section 80E allows for a deduction on interest paid on loans taken for higher education, which includes full-time graduate or post-graduate courses in engineering, medicine, management, or applied and pure sciences. Another respondent confirmed that the section aims to provide tax exemptions to individuals pursuing prescribed higher education, implying its applicability to foreign studies as well.