The Hindu Business Line : A loan from brother

I COMPLETED my PGDBA from an institute in Mumbai in 2002. Since the institute was not approved by the AICTE at the relevant point in time, I could not get a bank loan for my education. I, therefore, took an interest-free loan of Rs 1,50,000 from my brother.

The institution in which I studied has since got AICTE approval with retrospective effect. Will I be eligible for deduction under Section 80E in respect of the repayment of the loan? -- Krishnan Iyer

Reply

You cannot claim deduction under Section 80E. Deduction under this section is available only on loan taken for higher education in respect of the principal repayment and interest, if any, and only if the loan is from a bank, specified financial institution or approved charitable institution.

In the instant case, since the loan is from your brother, the question of claiming deduction under Section 80E does not arise.

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