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What is the maximum amount of deduction available under section 80E of Income Tax Act 1961 in respect of deduction for interest paid on loan taken for higher education, for the assessment year 2018-19?

What is the maximum amount of deduction available under section 80E of Income Tax Act 1961 in respect of deduction for interest paid on loan taken for higher education, for the assessment year 2018-19? Correct Answer No limit, actual amount paid can be claimed as deduction

The correct answer is No limit, the actual amount paid can be claimed as a deduction.

Key Points

  •  Deduction under section 80E: Deduction in respect of repayment of loan taken for higher education.
  • The interest paid on that education loan is allowed as a deduction from the total income under Section 80E.
  • There is no limit on the maximum amount that is allowed as a deduction.

Related Questions

Which of the following components are true about tax planning?
1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.
2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.
3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.
4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.
5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.
Which of the following statements are true/ false?
1. Every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 9.33% of the salary or wages earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
2. Bonus will be paid in cash to the employees.
3. If the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer is bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of 10% of such salary or wage.
4. Bonus needs to be paid within a period of eight months from the close of the accounting year.
For the assessment year 2018-19, what is the maximum deduction available under section 80TTA of the Income Tax Act 1961?
A man takes a loan of some amount at some rate of simple interest. After three years, the loan amount is doubled and rate of interest is decreased by 2%. After next 5 years, if the total interest paid on the whole is Rs. 13,600, which is equal to the same when the first amount was taken for \(11 \frac 1 3\) years, then the loan taken initially is:
Income up to Rs. 5,00,000 is tax-free. Up to Rs. 10,00,000, income above Rs. 5,00,000 is taxed at 10% and if the income exceeds Rs. 10,00,000, the tax rate is 20% for income above Rs. 10,00,000. If the income of X is Rs. 15,00,000, then what percentage of his income will be paid as tax?
Statement I): If the tax liability has been reduced within the legal framework, it is tax planning. Statement II): If tax liability has been reduced to get the benefit of deduction available under the income tax, it is called tax evasion. In the context of the above two statements, which one of the following codes is correct?
Statement (I): If the tax liability has been reduced within the legal framework, it is tax planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available under the income tax, it is called tax evasion.
In the context of the above two statements, which one of the following is correct?
What is the maximum limit available on which NO TDS is required to be deducted in respect of premature withdrawal fom EPF under Section 192A of Income Tax Act 1961 for Assessment Year 2018-19?
What is the maximum limit available in respect of dividend under section 194 of the Income Tax Act, 1961, for the assessment year 2018-19 on which no TDS is required to be deducted?
What is the maximum limit available on which NO TDS is required to be deducted in respect of winning from Horse races under Section 194BB of Income Tax Act 1961 for Assessment Year 2018-19 ?