How to Claim Deductions under Section 80E?

Section 80E
Section 80E

If you have taken an Education Loan for your higher education in abroad, you can claim tax deductions under section 80E on the interest paid for the education loan. However, you can claim deductions only for the interesting part of the EMI.

Claim Deductions under Section 80E

Let’s find out what are the eligibility criteria to claim the tax deductions under section 80E of Income Tax Act.

The deduction under section 80E can only be claimed only by individuals. This deduction cannot be availed by HUFs or any other taxpayer. The education loan must be taken for the higher education of self, spouse, dependent children or a student for whom the taxpayer is a legal guardian. That’s why parents can claim this deduction without any hassle, for the loan taken for the higher education of their children.

The taxpayer must ensure that he/she has taken the loan from any bank/ financial institution or any approved Charitable institution. If you have taken any loan from friends or relatives, you cannot claim deductions under section 80E.

Claim Deductions under Section 80E

In order to claim tax deduction, the loan should be taken for higher education, the loan can be taken for higher education in abroad or in India. Higher studies include all the fields of study pursued after passing the senior secondary examination or any equivalent exam. It includes both the Vocational courses as well as the regular courses.

The deduction that is allowed is the total interest part paid as EMI during the Financial Year. There is no limit on the amount that can be claimed as deduction. You need to take a certificate from your Bank. Such certificate should segregate the principal and interest portion of the education loan paid by you during the financial year. The total interest paid by the taxpayer can be claimed for deduction.

Claim Deductions

You can only claim a deduction on the interesting part till 8 years, from the day you have taken a loan. After 8 years you cannot claim a deduction for this loan under section 80E.


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