GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rs. 15,000
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Rs.35,000
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Rs.55,000
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Any amount repaid
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Detailed explanation-1: -According to Section 80E*, the deduction is allowed on the total interest amount of the EMI paid during the financial year. The loan has to be taken from a bank or financial institution to pursue higher studies.
Detailed explanation-2: -Tax Benefits under Section 80E An individual who has taken an education loan for higher education can avail the tax deduction under Section 80E of the Income Tax Act, 1961. The best part about this deduction is one can avail it even after availing the maximum provided deduction of Rs. 1, 50, 000 under Section 80C.
Detailed explanation-3: -Under section 80C of the Income Tax Act, the maximum deduction allowed for the repayment of the principal amount of a home loan is Rs. 1.5 lakh. Deduction under section 80C also includes investments done in the PPF Account, Equity Oriented Mutual funds, Tax Saving Fixed Deposits, National Savings Certificate, etc.