July 9, 2023 12:51 pm
Topic starter
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My son has an education loan for Higher studies in Germany for over 5 lac ruppees. I am the co-borrower of the loan from Nationalised bank. Interest is paid through my account as well as my son's NRE a/c. I havepaid Rs 21000 and he has paid over 50000/= from his NRE account. He does not come under Indian tax laws. For over 2 years his stay in India is less than 30 days. Now can I claim the amount paid by him. The clause is not clear regarding source of payment. EMI starts from July 2023. Bank certificate obtained. This is for the FY 22-23
This topic was modified 3 months ago by Venkat
4 Answers
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July 9, 2023 4:55 pm
Dear Venkat ji,
Education Loan EMI started from July 2022?? (You mentioned it as 2023)
The tax benefit can be claimed by either the parent or the child (student), depending on who repays the education loan to start claiming this deduction.
As per the information available @ IDFC Bank website ..
According to income tax rules, education loan tax exemptions are available only for individual borrowers. It means you cannot claim the deduction if you have taken a joint education loan. You can claim the tax benefits on an education loan if:
- You have taken the loan for your son or daughter
- You have taken the loan for yourself
- You have taken the loan for your spouse
- You are a legal guardian of the person for whom the loan is taken.
But, as far as I know,
If parent(s) are sharing the EMI payments, then the extent to which they pay interest part of the EMI can be claimed by them and the rest by the Child (student).
As per the regulations, only an individual can claim a tax benefit, and no deductions are applicable on joint loans. Having said that, you can claim tax benefits under Section 80E of the Income Tax Act, 1961, if you are:
- A parent taking the loan for their children as the primary borrower or co-signee
- A student taking the loan can claim this deduction after getting a job from his taxable income
- A spouse paying the loan
- A legal guardian who is paying off the loan for the child can claim tax benefits
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July 10, 2023 1:19 pm
Topic starter
Thank you for your prompt reply. I am a retired Canara Bank officer. The loan is availed by my son and the parent has necessarily be the co-borrower. The EMI starts only from JUly 2023 but interest can be paid earlier. I shall claim the amount paid by me. My son being a non resident my second doubt was can I claim the amount paid by him.
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July 10, 2023 5:57 pm
Dear Venkat ji,
I believe, you can not claim the amount (interest) paid by your son as tax deduction in your ITR assessment.
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July 13, 2023 12:35 am
Topic starter
Thank you very much.
