Whether interest paid on loan taken from foreign bank for management studies in foreign countriesis deductible

For management study in OXFORD University loan was taken from Bank at USA (as banks in India did not grant loan for want of security like house property/land) for which interest is paid to such bank. Please let me know whether the amount of interest paid to such USA bank is deductible u/s 80E in computing the net taxable receipt ?

If you are still studying in USA and/or working there, check it on IRS website (if you can claim it in USA) while you earn there.

If you plan to work in USA, it is fine to take in USA because of forex conversion. I think you took it when $ was weak and that was the good time to take a loan.

In India, from 2008 onwards, the interest is now deductible and not so attractive to take a loan for foreign studies.

Watch Suze Orman show on CNBC if in USA.

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Interest paid on education loan to be eligible for deduction under section 80E, should have been paid to a bank in India. The term 'Financial Institutions' is defined in the section itself. It covers only Banking companies to which Banking Regulation Act, 1949 applies. Therefore interest paid to a forein bank is not deductible.

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