The Government has extended tax concession on interest charged for education loan. The concession has been extended to all streams of study for which loan has been taken.
Vocational courses are also included in the list. The basic idea behind extending tax concession to all streams is that students from all economic walks of life would be able to reap the benefits of this scheme.
The concession was till now confined only to loans taken for graduate and post graduate courses in streams like medicine, engineering, management and post-graduate courses in applied sciences or pure sciences, including mathematics and statistics.
"The latest amendment in section 80E of the I-T Act will bring all the streams of education (apart from regular ones) and vocational courses under its ambit."
"This will benefit the students who apply for graduate and postgraduate courses in various streams during the upcoming academic session," a senior Finance Ministry official said.
This concession would also be provided to parents who have taken the loan for a child whom they have legally adopted.