Can You Claim Deduction For Pilot Training Course?
My son is doing Commercial Pilot Training at New Zealand & I had availed Education Loan from Corporation Bank in August 2007. The loan is in the joint name of my son & my wife & myself is the guarantor. I have paid interest debted towards loan regularly. My question is whether the intetrest paid towards this loan is eligible for deduction under section 80E for filing my Income Tax Return .SURESH T, Mumbai
Your claim of deduction is not allowable on two grounds
1. the deduction is allowable to an assessee who has taken education loan. You have not taken the loan. Your son and wife have taken . There fore , you are not eligible for claiming deduction despite the fact that you have paid amount of interest. Read the provision of section 80E carefully
80E. (1) 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"
2. Second reason is that the education loan has to be taken for the purpose of pursuing higher education which is defined subsection 3(c) in following words:
3(c) 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;
I find pilot training does not fall under any of the course given above. There fore , prima facie , you are not eligible for deduction of interest u/s 80E for aforesaid reasons.
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