Saturday 26 April 2014

Deduction u/s 80E is Unlimited


There is no limit prescribed under the I T Act. However, Deduction is limited to Gross Total Income .Section 80E is given below and give attention to word ANY in RED
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.
(2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to in sub-section (1) is paid by the assessee in full, whichever is earlier
.”

No comments:

Requirement to dematerialize shares of private limited companies

 The Ministry of Corporate Affairs in October 2023 had mandated private companies and their shareholders to dematerialize their shareholding...