Education tax credit purpose is to Educate Student and illiterate people. Education is all about getting yourself better with studying or by learning something new .Most of student who want to study or gain knowledge about their aim in life think it’s difficult to get Become more Educated But in reality it’s not very to Difficult to Get a Education Degree Online. Education is Very important for every person, Because Developed Country can be only called developed if people of country is Educated and smart. You don’t have to worry about Education Dive or Education degree. With The available Resources in Our Community One’can become or Educate at Work.
Education tax credit:-
When taking a Education loan or Education Tax credit . The First Thing that comes to mind is we gonna benefit for taking loan especially for Education Purpose . and If you too are curious about these question than the answer is yes. and In This article we are gonna talk about Education loan basics.
What For or who is Going to take the loan :-
so thing is that when person take a Education loan,it’ necessary that he or she gave their name for Education Loan. Because you cannot take the advantage of tax reduction if loan is taken by or for someone else. be it your wife or husband, your first cousin or Close relative. Only the person who is valid for Education loan is valid for Education Tax credit. so when you are gonna take the education loan the person who is liable to repay it is going to take the Education Tax credit.
Advantage of taking Tax credit :-
If you got yourself Education Loan, you can get or claim yourself tax credit under the section 80E of income tax act. you will then get the advantage of tax credit on the interest you pay .
but there is a con on tax credit that is there is limit on tax benefit. but that was when on it’s origins .
on it’s origins:
1.total value to be paid (principle paid and interest paid)
but now this has ended . the tax you will pay will be deducted from your salary or income. now there is no limit on it anymore. it will deduct the tax you have to pay.
No deduction, however is now can be for for total amount(principle Amount)
benefit is interest can be reduced from it and there is no limit on it.
the bad thing is, the principle amount is no longer entitled to for any reduction.
do remember the repayment of amount of Education Loan is not covered under the Section 80C . as already told it’s covered under Section 80E of Income Tax Act.
The time limit of Repayment of Education Loan:-
As we told you the reduction will only be started when you start repaying the amount .the deduction are available upto Eight years totally . you cannot claim it reduction for more than time period of 8 years . so f you have repayment of loan of 10 years than start repaying loan in 8 years to get the Education Tax credit . unless you are not going to tax benefits.
kept a thing in your mind, if you get this loan from a Employee or Someone known. you cannot claim for any tax reduction or Tax Credits. you can get only if you Take Education Loan if you take it from Financial institute or Bank.