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Education Loan Tax Exemption

Tax Benefit on Education Loan under Section 80E

An education loan can not only fund your higher studies but also help save tax. The interest paid on the education loan can be claimed as deduction, as per Section 80E of the Income Tax Act, 1961.

Under Section 80 E, you will get the deduction for Interest paid on Education Loan taken for higher education of self or relative (spouse or children). Following are a few more things to know about the Tax Benefit:

  1. Only Interest part of the loan amount can be claimed
  2. No upper limit of deduction as interest paid
  3. Deduction can be claimed if Education Loan is taken by self, spouse, children or by the legal guardian of the student.
  4. Deduction can also be claimed for education loan availed to study abroad
  5. Education loan should be from any recognized financial institution or any approved charitable institution.
  6. Tax Benefit can also be claimed for availing education loan even for vocational or distant learning programs
  7. No Limit of availing this tax benefit. On can claim any amount of interest paid on educational loan.