Education and Career Forum

Sir,

My name Sohaan Kaushik and I am working in CCL. I have taken an Education Loan of Rs. 2.2 Lacs from United Bank of India for my son who is pursuing MBA from Symbiosis. I have heard about Tax Rebate from one of my colleague. Can you tell me about this in details.

Yes, you have heard the right thing. You can get income tax rebate on the basis of the education loan taken for your son. However, the prime condition is you should be co-borrower of the education loan and pay interest to the bank. You need to get the proof of this from the bank and provide this at the time of filing your income tax.

You will be provided a Tax Rebate on the basis of the Loan that was sanctioned on your behalf for your son.
Once you take a Loan and you start paying the Installment for the Loan amount there is Income Tax benefit that is provided to the person who has taken the Loan.
The total amount paid by you for the Loan will be excluded from the Taxable income bracket and the total tax that you have to pay will be lesser than what you would have paid had you not taken the Loan.
This is the benefit you are entitled to for on taking the Educational Loan for your son.