Sec 80E-Interest on education loan, Income Tax

[BHARAT COKING COAL LIMITED]

A person is not able to get Education loan...So he is planning to get a Personal Loan solely to get used for the purpose of the higher education of his son studying abroad...Whether he will be getting the interest benefit u/s 80E? Whether it is mandatory to get education loan only for getting benefit u/s 80E? Is the nature of transaction not important, given the fact that he is ready to maintain a seperate bank a/c to prove that the loan was used solely for the purpose of higher education of his son abroad....

An early opinion on the aforesaid issue is solicited...

Thanks...

Posts / Replies

[Ganeshan Kalyani]

The loan should have been taken for the purpose of education. The provision does not states that loan should be in the name of education loan , the purpose of the loan is essential. The loan should have been taken for education. Hence i infer that you can take the benefit of interest paid on the loan taken for education.