India - Income Tax Act 2010 - Saarc

S. 80E I.T. ACT, 1961 1.402institution or any approved charitable institution for the purpose of pursuing hishigher education 87 [or for the purpose of higher education of his relative].(2) The deduction specified in sub-section (1) shall be allowed in computing thetotal income in respect of the initial assessment year and seven assessment yearsimmediately succeeding the initial assessment year or until the interest referredto in sub-section (1) is paid by the assessee in full, whichever is earlier.(3) For the purposes of this section,—(a) “approved charitable institution” means an institution specified in, or,as the case may be, an institution established for charitable purposesand 88 [approved by the prescribed authority] under clause (23C) ofsection 10 or an institution referred to in clause (a) of sub-section (2)of section 80G;(b) “financial institution” means a banking company to which the BankingRegulation Act, 1949 (10 of 1949) applies (including any bank orbanking institution referred to in section 51 of that Act); or any otherfinancial institution which the Central Government may, by notificationin the Official Gazette 89 , specify in this behalf;90[(c) “higher education” means any course of study pursued after passingthe Senior Secondary Examination or its equivalent from any school,(Contd. from p. 1.401)(2) The deduction specified in sub-section (1) shall be allowed in computing the totalincome in respect of the initial assessment year and seven assessment years immediatelysucceeding the initial assessment year or until the loan referred to in sub-section (1)together with interest thereon is paid by the assessee in full, whichever is earlier.(3) For the purposes of this section,—(a) “approved charitable institution” means an institution specified in, or, as the casemay be, an institution established for charitable purposes and notified by theCentral Government under clause (23C) of section 10 or an institution referred toin clause (a) of sub-section (2) of section 80G;(b) “financial institution” means a banking company to which the Banking RegulationAct, 1949 (10 of 1949) applies (including any bank or banking institution referred toin section 51 of that Act); or any other financial institution which the CentralGovernment may, by notification in the Official Gazette, specify in this behalf;(c) “higher education” means full-time studies for any graduate or post-graduatecourse in engineering, medicine, management or for post-graduate course inapplied sciences or pure sciences including mathematics and statistics;(d) “initial assessment year” means the assessment year relevant to the previous year,in which the assessee starts repaying the loan or interest thereon.’Earlier section 80E with heading “Deduction in respect of payment for securing retirementannuities” was inserted by the Finance (No. 2) Act, 1967, w.e.f. 1-4-1968. Section 80E,thereafter, was amended by the Finance Act, 1968, w.e.f. 1-4-1969 and the Finance Act,1984, w.e.f. 1-4-1984 and later on by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1989. This topic was dealt with by original section 80C which was inserted by theFinance Act, 1965, w.e.f. 1-4-1965.87. Inserted by the Finance Act, 2007, w.e.f. 1-4-2008.88. Substituted for “notified by the Central Government”, ibid.89. For notified institutions and Circular No. 688, dated 23-8-1994, see Taxmann’s MasterGuide to Income-tax Act.90. Substituted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010. Prior to its substitution, clause(c) read as under:(Contd. on p. 1.403)