For at most how many tax years can interest on a higher-education loan be deducted under section 129(2) of the Income-tax Act, 2025?
Question and options
For at most how many tax years can interest on a higher-education loan be deducted under section 129(2) of the Income-tax Act, 2025?
8: the initial tax year and the next 7
10: the initial tax year and the next 9
5: the initial tax year and the next 4
7: the initial tax year and the next 6
Answer and explanation
Section 129(2) allows the deduction for the initial tax year, in which the borrower starts paying interest, and the seven tax years immediately after it, or until the interest is fully paid, whichever is earlier. The deduction can therefore run for at most eight tax years, not seven, because the initial year is counted separately.
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