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Rediff.com  » Getahead » Tax benefits on education fees

Tax benefits on education fees

By RelaxWithTax
April 12, 2006 08:53 IST
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You have a question about house rent allowance, medical allowance, or even a general tax query.

Here's where we step in with our experts, Relax With Tax.

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My sister is pursuing her LLB and my brother, his M Tech. Can I claim this amount under any section of the Income Tax Act?

- Mahesh Kumar

I am looking after my two nieces who are totally dependent on me for their studies. Can I claim this amount as deduction under any section of the Income Tax Act?

- Sudheer Babu

No. Neither of you are eligible for any deduction on your income for the education expenses incurred by you for your siblings and nieces respectively.

In our opinion, the deduction available to an individual under Section 80C is for the tuition fees paid for biological / legally adopted children only.

Hence Sudheer, in your case, if the second parameter is true, then you could claim the deduction.

Please read Are education fees tax free?

My wife is not working and is pursuing a course. I took an education loan of Rs 85,000 towards this end. Can I get the tax benefit on this amount?

- Manoj Thapliyal

Deduction for interest paid on education loan repayment is available under Section 80E only for loan repayment for yourself and if the repayment is made out of your income.

You would not be eligible to claim  deduction for interest on a loan taken for your wife's education.

Please read Tax benefits on education loans.

To see the other queries answered, read Will your gift be taxed?

Got a question for Relax With Tax? Please write to us!

Note: Questions may be edited for brevity. Due to the tremendous response, all queries will not be answered.

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Illustration: Dominic Xavier

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