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- Section 80E - Income Tax Deduction on Education Loans in India
- Which tax saving schemes invest before 2014 March 31?
- Tax Savings Tips under Section 80C - Investment
| Section 80E - Income Tax Deduction on Education Loans in India Posted: 15 Feb 2014 12:57 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Education Loans in India and Tax Benefits
If you want to go for higher education for your beloved child and your bank balance doesn’t allow you to take a step forward, education loans looks like the best option to meet the cost of higher education especially if your son or daughter is aspiring for top B-School or engineering college in India. Deduction under Section 80E of Income tax Act allows you to claim income tax deduction on interest paid on education loan.
Eligibility
The eligibility criterion for Section 80E tax deduction is available only to individuals which doesn’t includes HUF. Education loan must be availed from some approved financial institution or charitable institution which should be specifically availed for the purpose of pursuing higher education. Otherwise, if you have taken education loan for the student from your relative, then no tax deduction would be allowed under Section 80E. In such a case, a financial institution means a bank which is covered under Banking Regulation Act of 1949
Tax Deduction Limit under Section 80E
There is no maximum limit for the amount of tax deduction under Section 80E. You can also avail the entire interest paid on education loan as an income tax deduction. But there is no income tax benefit on the principal repayment on education loan availed for your child. This 80E tax deduction is over and above the normal Rs 1,00,000 tax deduction available under Section 80C which helps you to save tax by investing in mutual funds and long term fixed deposits
Section 80E – Purpose of Deduction
The said deduction should be availed only for the purpose of “higher education”. By higher studies, we mean full time course in management or engineering, medicine, applied sciences, hotel management for the purpose of graduation or post graduation. It includes regular courses pursued after passing out Senior secondary examinations from approved Board. The loan may be taken for your child or for your spouse.
Period of Tax Benefit
You can avail this tax benefit for a total of eight years and if your education loan is for a period of say 10 years, you won’t be able to claim deduction on interest paid after 8 years.
Points to Note
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--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
| Which tax saving schemes invest before 2014 March 31? Posted: 15 Feb 2014 12:16 AM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Tax Saving Schemes invest in 2014
It's once again that time of the year, when you have to make an investment choice to save tax under Section 80C of the Income Tax Act. Taking a decision on the type of instrument depends on your own needs and ability to take risk. We take a look at which instrument are a good choice and under what conditions.
Equity Linked Savings Scheme (ELSS)
One can opt for an Equity Linked Savings Scheme or ELSS only if one has a penchant for risk. Since the money is invested in the stock markets, chances are you may get returns that are even negative. So, you might end up saving 10, 20 or 30 per cent in tax and lose the amount by way of fall in stock prices in the Scheme. At the same time it's possible that you even get superlative returns. The lock-in period of only 3 years makes it attractive.
If you do not have an appetite for risk, this scheme is best avoided.
Life Insurance premium
Now, most folks invest in life insurance to save tax. It's best to avoid investing in life insurance if you are already adequately protected and merely to save tax. Returns from life insurance schemes are very poor and one need not block money here, if one has adequate protection.
Tax Saving Bank Fixed Deposits
Tax Saving Bank Deposits offer interest rates of around 9-9.5 per cent. But, the problem with these instruments are two fold: the first is that the interest received on these instruments, unlike PPF is taxable. The second is that the lock in period of 5 years is pretty high. However, if you want returns higher than PPF (pre-tax), this should be the choice, because they also come with safety, unlike ELSS.
Public Provident Fund (PPF)
PPF offers much lesser interest rates than banks, but, the interest earned is tax free and if you are in the highest tax bracket the returns are much superior to tax saving bank fixed deposits. The only problem with PPF is the lack of liquidity as partial withdrawals are permitted after the 7th year only.
Clearly, the type of instrument you want to choose would depend on your needs, duration and ability to take risk.
For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
| Tax Savings Tips under Section 80C - Investment Posted: 14 Feb 2014 10:40 PM PST Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Leave a missed Call on 94 8300 8300
Tax Savings - Investment
The specified investment schemes under section 80C are:
For further information contact Prajna Capitalon 94 8300 8300 by leaving a missed call
Leave a missed Call on 94 8300 8300
Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com
--------------------------------------------- Invest Mutual Funds Online
Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund Application Forms ---------------------------------------------
Best Performing Mutual Funds
B. Large and Midcap Funds Invest Online
C. Mid and SmallCap Funds Invest Online
D. Small and MicroCap Funds Invest Online
2. Franklin India Smaller Companies E. Sector Funds Invest Online
F. Tax Saver Mutual Funds Invest Online 1. ICICI Prudential Tax Plan 2. HDFC Taxsaver
G. Gold Mutual Funds Invest Online
H. International funds Invest Online 1. Birla Sun Life International Equity Plan A 2. DSP BlackRock US Flexible Equity 3. FT India Feeder Franklin US Opportunities 4. ICICI Prudential US Bluechip Equity 5. Motilal Oswal MOSt Shares NASDAQ-100 ETF |
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