Have you taken an Education Loan to support higher studies of yourself or of your spouse, children or for the student of whom you are legal guardian and you are not aware of the tax benefits that you are entitled to ???
You can claim deduction under section 80E of the Income tax Act, but keep the following points in mind that;

  1. Deduction is available only to Individual not to HUF or other type of Assessee.
  2. Deduction amount – The amount of Interest paid is only eligible for deduction and moreover there is no cap on the amount to be deducted.
  3. There is no deduction is allowed on the repayment of Principal amount of the loan.
  4. Deduction available if Interest is been paid during the previous year financial year only.
  5. Interest on Loan taken from relatives or friends will not be eligible for deduction.
  6. Interest should have been paid for the loan taken for the purpose of pursuing his higher education of self or of the spouse and children, student of whom you are legal guardian.
  7. Only loan taken from any financial institution or any approved charitable institution for the purpose of pursuing his higher education is allowed.

Note: Repayments of education loan NOT covered under Section 80C.

Claim Tax Deduction on Education Loan (Section 80E)

2 thoughts on “Claim Tax Deduction on Education Loan (Section 80E)

  • August 30, 2014 at 8:03 PM
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    I have taken education loan for my son, and I am repaying interest from 2013. Now my son got job, Is there any compulsion that MY SON ONLY REPAY THE LOAN and I will not after my son got job

    Reply
    • September 7, 2014 at 6:38 PM
      Permalink

      Hi Dinesh,

      There is no such compulsion I believe. You can very well repay and take deductions.

      Reply

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