Examine the correctness of the following statements and provide answer with reference to the provisions contained under the Income-tax Act, 1961: (1) Anil, during the financial year 2019-20, paid interest to SBI on the l

The statement is Incorrect: The deduction under section 80E of the Income Tax Act, 1961, is available to an individual in respect of interest on loan taken for his higher education or for the higher education of his relative being the spouse and children of the individual. Therefore, Anil will get the deduction under section 80E of the Income Tax Act, 1961 assuming the school, board or university is recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority. It is immaterial that his son is already employed in a firm for claiming deduction under section 80E of the Income Tax Act, 1961. ALTERNATIVE (OR) The statement is Correct: The deduction under section 80E of the Income Tax Act, 1961, is available to an individual in respect of interest on loan taken for his higher education or for the higher education of his relative being the spouse and children of the individual. For the purpose of this provision, 'higher education' means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so. In this case, the higher education has been completed from USA, which may not fall within the scope of Section 80E. Therefore, Anil will not get the deduction under section 80E of the Income Tax Act, 1961.