As per Section 80-E of Income Tax Act, 1961
Yes, Credila's Education Loan borrower or co-borrower can avail a tax benefit under Section 80E of Income Tax Act, 1961.
Please refer to the grid* below to find an indication of tax savings possible by availing of an education loan from Credila.
Credila, an HDFC Ltd. Company, is India's first education loan specialist. Availing a loan from Credila is a win-win offer; Your child fulfils his/her higher education while you save big on your Income Tax too!
An individual can avail of tax benefit on interest paid on an education loan for self or a relative, meaning spouse, child or a student for whom the individual is a legal guardian.
*Terms And Conditions: (i) Tax rates may vary from individual to individual and the tax benefits are subject to changes in tax laws from time to time. Please consult your tax advisor/accountant to determine your exact tax benefits. (ii) Eligibility and validity of an applicant shall be determined solely by Credila. Credila reserves the right to reject any application without assigning any reasons therefor. (iii) The eligibility of an applicant for the aforementioned tax benefits shall be determined in accordance with the provisions of Section 80E of the Income Tax Act, 1961. (iv) The above calculations are merely illustrative in nature and the "Effective Rate" has been arrived at, based on the following assumptions: (a) Tax savings have been calculated as per tax benefits under Section 80E of the Income Tax Act, 1961; (b) The calculation has been made for a loan amount taken in the first tranche and presumes no revision in interest during the year of review; (c)A tax slab of 30% has been presumed for an individual, together with an education and higher education cess of 3% on the same; (d) The tenor of the loan has been taken at 7 years (i.e. 2 years for the period of study plus a grace period during which only interest would be serviced and 5 years thereafter during which the repayment towards the principal would be made); (e) The interest paid has been calculated for a period of 12 months; and (f) The yearly tax savings amount depicted is only for the first year of disbursement.