Section 80E allows a deduction for interest paid on higher education loan repayment. There is no monetary limit for deduction allowed u/s 80E.
Only the Individual taxpayer making the education loan repayment can claim the deduction.
For instance: if the Father is making the repayment of the loan amount for his son, then only the father can claim the deduction u/s 80E. In case, the son is repaying the higher education loan, then only the son can claim the benefit u/s 80E.
Individuals must also fulfil the following conditions to claim deduction u/s 80E:
- The loan is taken from financial institutions or charitable organization.
- The loan should be taken for the purpose of higher education for:
- Student for whom you are a legal guardian
Steps to claim 80E deduction
- Navigate to Tax Breaks
- Click on the 80E card
- Add the interest on education loan amount