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Education Loan Interest should come under Sec-80

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Dear Experts,

I stuck with the following requirements while creating the Education Advance loan in IT 0045,

1) Emp can get maximum10 lakh rupees as a Education loan advance, that too in different disbursements. If employee get 2nd disbursement, that amount should add to the outstanding amount of the 1st disbursement and thereby calculate the revised EMI from that month and accordingly deduction to happen.

Ex: Loan Approval is 10,000,000/-

   1st disbursement is 4,00,000/- on 01.04.2016. Total tenure is 120 months ( 10 Years )

   Based on total tenure (Start Date and End Date ) system should calculate the EMI.

   After few months of repaying Emp can get the 2nd disbursement of 6,00,000/- as an Education Advance and the same has to be shown in Payments Tab of that loan type along with outstanding balance of 1st disbursement of loan and thereby system calculate the revised EMI from that month onwards.

[ (2nd disbursement) 6,00,000 + ( Outstanding balance of 1st disbursement) lets Say 2,50,000/-. ], The total amount of 8,50,000/- should appear in payments tab of the existing loan type and there by EMI calculate on 8,50,000/- from the month of 2nd disbursement of loan amount.

   Is there any such possibility in loans configuration?

2) Education Loan Interest amount should exempt under the Sec-80E.

     How to map loan interest wage type for the exemption under Sec-80E?

Request you experts please help me out.

Thanks & Regards,

Mastan Shaik

Accepted Solutions (1)

Accepted Solutions (1)

Product and Topic Expert
Product and Topic Expert
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Hello Mastan

For the second query SAP has already delivered the same in View V_T7INI*.

Refer to Subsection 6 1 -which mentions the same  in V_T7INI9

Similarly check for V_t7ini7.

Thanks and Kind Regards


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Hi Jayanth,

Thanks for your inputs,

As you said that I have assigned a WT to Sub.Sec 6 in V_T7INIC. Even after assigning the WT to Sub.sec6, system is not giving exemption under Sec-80 due to Loan Interest WT is not passing through the functions INTPD & INS80.

Since loan WTs are directly pass to RT at XLOZ PCR, Function INS80 is not reading the Loan Interest WT for the exemption. To get the exemption I have added the loan interest amount to a dummy WT and pass to the input table. That dummy WT assigned in V_T7INIC instead of my original Loan interest WT. In this case exemption is coming for current month only not projecting for the 12 months.

How to get the exemption for the remaining months of a financial year?

Dear experts as per the above screen shot Loan Interest amount should prorate and get exempt under Sec80.

Ex: In April Loan Interest amount is 600/-

            600*12 = 7200              ----------> This 7200/-should come under Agg.Chap_VI as a Sec80E Exemption in April.

      In May Loan Interest amount is 551.81/-

           (551.81*11) + previous month Interest amount = 6069 + 600( Previous Month Interest)

                                                                              = 6669.91/-   ( Should add to Agg.Chap-VI as Sec80E Exemption in May.)

      In June Loan Interest amount is 503.29/-

         (503.29*10) + Previous Months Interest Amounts = 5039.9 + 600 + 551.81

                                                                                 = 6184.71  (Should add to Agg.Chap-VI as Sec 80E exemption in June.)

Like wise till the end of the financial year amount should project and exempt under the Sec80E and the same should appear in Form-16 under the

9. Deductions under Chapter VI-A

     B) Other sections (e.g. 80E, 80G, 80TTA, etc.) under chapter VI-A

       Request you experts need a PCR for the above scenario. I Am naive in writing a PCR, please help me out.

Thanks & Regards,

Mastan Shaik.

Answers (0)