Tax & Repayment
Section 80E Tax Deduction on Education Loan: How to Claim It
Section 80E of the Income Tax Act lets you deduct the full interest paid on your education loan. Here is exactly how to claim this benefit when filing your ITR.
What is Section 80E?
Section 80E of the Income Tax Act, 1961 allows a deduction on the interest paid on an education loan taken for higher education. There is no upper limit on the deduction amount — you can claim the entire interest paid.
Who Can Claim the Deduction?
Only an individual taxpayer can claim the 80E deduction. The loan must have been taken for the higher education of yourself, your spouse, your children, or a student for whom you are the legal guardian.
For How Long?
The deduction is available for a maximum of 8 consecutive assessment years starting from the year you begin repayment.
How to Claim in ITR
- Obtain an interest certificate from your lender showing the interest paid during the financial year
- Enter the interest amount under Chapter VIA, Section 80E in your ITR form
- The deduction reduces your gross total income before computing tax
Important Notes
- The deduction is only on interest, not on the principal repaid
- The loan must be from a recognised financial institution or approved charitable institution
- Loans from family or friends do not qualify