|
A Collection of Informative and Interesting Articles
Absolutely Free - Start Sharing Your Knowledge Today! |
Home | Submit Articles | Login Online Since Year 2000 |
| ALL Categories | HEALTH | EDUCATION | FINANCE | TECH | WOMEN | ENTERTAINMENT | TRAVEL |
Borrow and StudyBY: Vivek SHARMA | Category: Finance | Submitted: 2011-02-20 19:15:20
You had a dream of going for higher studies and somehow could not complete it during your college days. May be there was a financial constraint or your family wanted you to take up a job. Now things have changed for you. You are employed and have resources to complete your unfulfilled ambition. Should you use your own resources or borrow to study further. You would wonder why should I borrow and study, when you have own resources. The answer is simple and is explained by Section 80E of Income Tax Act. If you go through this Section i.e. 80E you will find it makes sense to borrow and study. If you borrow and study, you get deduction in respect of payment of loan taken for higher studies under Section 80E. The deduction is available for the interest payment made by you on loan taken for higher study. What is encouraging is that the deduction is available on all kinds of education after Senior Secondary level (You must have passed senior secondary education from a recognized board). The educational loan can also be taken for vocational studies. You need to ensure that you take a loan from a financial institution (i.e. a banking company or notified financial institution) or an approved charitable institution. It is important to note that no deduction is available on payment of principal amount. The benefit of loan can be explained with an example: TYPE | Loan 1 | Loan 2 For whose education the loan was taken | Self | Self Purpose of Loan | Part Time MBA | Part Time Fashion Designing Amount of Loan | 500000 | 100000 Repayment of principal in a year | 100000 | 20000 Repayment of interest | 50000 | 10000 As per table above, the total tax benefit you would receive is Rs. 120000 under section 80E. This means that you don't have to pay money upfront from your pocket and you don't pay any interest on education loan as the entire interest payment is tax deductible. So what are you waiting for, borrow and upgrade yourself. Please do remember not to borrow beyond your means. After all you will repay the principal amount. Article Source: http://www.saching.com/ About Author / Additional Info: Comments on this article: (0 comments so far)
Additional Articles: • EDEN ON EARTH • Control Your Mind With Meditation • Importance of Summer Project in MBA • How Can You Increase the RAM and Other Capacities of a Computer Latest Articles in "Finance" category: • Making Sure Your Charity Gets the Most Out of Your Donation • Increased Savings By Smarter Purchasing Practices • What is Alternative Investment Market (AIM)? • FDI In Retailing - The Road Ahead • Trade the Major World Currencies Online • How Important is Economic Analysis For Fundamental Analysis of Stocks? • Health Protection of Your Family is Your Key Responsibility Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms. 
Copyright © 2010 saching.com - Do not copy articles from this website. |
|||||||
| | Home | Disclaimer | Xhtml | | |||||||
