For Quick Alerts
For Daily Alerts

Tax exemptions on education loan under section 80E

Tax exemptions on education loan under section 80E
Education loan is not only beneficial to pursue higher studies but also one can avail tax benefit under 80E of Income tax act. Only an individual is eligible for tax deduction not a Hindu Undivided Family.

Education loan can be availed for spouse, children and yourself. Loan can be availed to study in India as well as in abroad.

An individual can claim deduction on the interest on loan taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education.

"Higher education" means full-time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathe-matics and statistics.

Things to keep in mind before availing loan

  • Here, you get a deduction for the interest paid during the year for that particular year. Tax benefit is only for interest paid not on the principal amount.
  • Tax benefit can be availed only for 8 years from the date you start your first installment. After 8 years you will not be eligible for further tax benefit. So, it is better to repay before 8 years.
  • Loan should be availed from financial institution or any approved charitable institution.
  • The amount taken from relatives or friends will not be eligible for 80E under Income Tax Act.
  • Only full-time courses are eligible for tax benefit.
  • Education loans taken for both regular as well as professional courses pursued after passing the senior secondary examination are eligible.

Read more about: tax
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more