One of my friend has availed education loan for the higher studies of his son. The loan has been applied jointly by my friend and his wife.
Neither he nor his wife has filed the IT return for the F.Y 2015 - 16 and 16 - 17 and now they want to file it.
The issue is that, though the education loan for his son has been availed, with his wife as Co-Applicant, the entire Interest amount on the said loan has been paid by my friend from his bank account only. As such, can he avail 100% rebate by himself to the extent of the interest amount paid on loan or is he eligible only for the 50% of the total interest paid each year, while the rest can be claimed by his wife ?
Deduction under section 80E is available to assesse if has actually paid interest on loan taken by him or his relative for higher education.
In this case husband has paid tax so he can claim deduction and not wife. Further he can claim deduction for entire amount.
In my opinion, Since the entire amount of Interest is paid by your friend ,only he should claim deduction under section 80E.
Since no amount of Interest is paid by his wife,She should not claim deduction.
Further its my personal opinion , It will be good to talk to your CA or Consultant.
And you can also chat with Income Tax department for any query on Income Tax Department site. They will provide you prompt reply.
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