Sir ,
I have taken an education loan of rs 2000000 in 2013 and started paying regular EMIs after my course completion from May 2017. In the financial yr 2017-2018 i was given a tax statement from the bank that i have paid 52000 towards principal and 292800 towards interest and i have claimed tax exemption for the same. In june 2018 i have pre closed my loan by paying 2600000 as one time payment. When i requested for for a tax statement from the bank they gave me that i have paid rs 2480000 as principal and rest (120000) as paid towards interest. Is this a valid interest statement issued by the bank as i have taken rs 2000000 as loan(not 2480000 + 52000) and rest whatever i have paid should be interest paid.
please help me with this process as i cannot comprehend why i am charged so much for principal. what should my next step to claim this as interest paid as i can claim tax benefit from this.
Thanks in advance.
regards
Siva kumar reddy
2 Answers
Dear Siva,
If you have paid interest of around Rs 2.9 lakh in FY 2017-18, you got a loan statement stating that you have paid this as towards interest and you can claim entire interest as tax deduction u/s 80E for AY 2018-19.
The second statement is applicable for FY 2018-19 or AY 2019-20 only.
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thank you sir … my question is i have taken a loan with principal of rs 2000000 but when i have preclosed my loan why should the interest certificate issued by bank for FY 2018 -19 mention principal as 2500000. What ever more than 2000000 should be designated as interest paid. Or is there any misunderstanding from my side.please help me in this matter sir
regards
Siva
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