Is there Income Tax concession for Education loans? | What to do when there is problem in repayment of Education loans?

July 31st, 2010| Education, Finance.

Is there Income Tax concession for Education loans? | What to do when there is problem in repayment of Education loans?

The income tax section 80E is providing total concession on the educational taken by working people/ children/housewives. This concession is applicable up to 8 years from the year the interest is being paid. There is no tax concession on the actual amount. These concessions are available only for the recognized companies.

When there is a problem:

They should pay the interest every month and if there is any problem, they can meet the bank manager. The manager may give sometime for then to pay the interest. If the studies are discontinued for any reason, they should immediately inform the bank manager. If they do not inform, they consider this loan as NPA and the banks won’t come forward to provide loans.