Section 128 — Deduction in respect of interest on loan taken for higher education
Old Act equivalent: Section 80E of IT Act 1961 Sub-part: Deductions from total income
Statutory Text
- (1) An assessee who is resident in India, shall be allowed a deduction of the amount actually paid during the tax year or a sum of ` 40000, whichever is less, from income chargeable to tax of that tax year, for the medical treatment of such disease or ailment as may be prescribed—
(a) for himself or a dependant, in case the assessee is an individual; or
(b) for any member of a Hindu undivided family, in case the assessee is a
Hindu undivided family.
(2) A deduction shall be allowed under this section only if the assessee obtains the
prescription for the medical treatment from a neurologist, oncologist, urologist,
haematologist, immunologist, or any other specialist, as may be prescribed.
(3) The deduction under this section shall be reduced by any amount received un
der an insurance from an insurer, or reimbursed by an employer, for the medical
treatment of the person as referred to in sub-section (1)(a) or (b).
(4) If the amount actually paid is in respect of the assessee or his dependant or
any member of a Hindu undivided family of the assessee and who is senior citizen,
the amount of deduction as referred to in sub-section (1) shall be substituted with
“ 100000” for “ 40000”.
(5) For the purposes of this section,—
(a) “dependant” shall have the meaning as assigned to it in section 127(9);
(b) “insurer” shall have the meaning assigned to it in section 2(9) of the Insurance Act, 1938 (4 of 1938). Deduction in respect of interest on loan taken for higher education.
Provisos
None.
Explanations
None.
Tables
Present in statutory text above — see formatted section.
Key Structure
- Applies to: Individual who is resident in India
- Conditions: Interest paid on loan taken from financial institution or approved charitable institution for higher education
- Time limits: Deduction available for initial year and 7 immediately succeeding tax years or until interest is fully paid, whichever is earlier
- Monetary limits: No monetary cap — full interest amount is deductible
- Exceptions: Loan must be for higher education of self, spouse, children, or student of whom assessee is legal guardian
Cross-References
- Section 2
- Section 127
Amendment Notes
None noted from the extracted pages.