Tax Deduction Under Section 80E - Deduction for Education Loan Interest

Hi, Friends today we are going to discuss Income Tax Deduction Under Section 80E which comes in Deduction Under Section 80 or Under Chapter VIA on your Income Tax Computation. You Can call this section as Deduction Under Section 80E. This comes in computation of total income for individual Assessee, that's means any Individual can claim this deduction if he or she is eligible for that. 

Tax Deduction Under Section 80E - Deduction on Education Loan Interest

What is Deduction Under Section 80E

Deduction Under Section 80E is all about DEDUCTION ON EDUCATION LOAN INTEREST. That's means any individual can claim this deduction if he or she taken any education loan for higher education for self, spouse or children or for the students for whom the individual is legal guardian. Then the individual can claim this deduction for the interest he or she paid on the educational loan taken for higher education.

We already covered - 

1. Tax Deduction U/S 80C, 80CCC, 80 CCD
2. Tax Deduction U/S 80D
3. Tax Deduction U/S 80DD & 80DDB
4. Tax Deduction U/S 80GG
5. Tax Deduction U/S 80TTA
6. Tax Deduction U/S 80TTB
7. Tax Deduction U/S 80EE and 80EEA

Eligibility for Deduction Under Section 80E  

• Only individuals can eligible for this tax deduction. Company or HUF can not eligible under this deduction.
• Any individual can claim this Deduction Not for the Principal only Interest component comes under this Deduction.
• The loan should be taken for Higher Education for Self, Spouse, Children, or for the students for whom the individual is a legal guardian.
• The loan must be taken on the name of the assessee who is liable to pay tax and claim this Deduction.
• A deduction can be availed for 8 years, anyone should not claim this deduction beyond 8 years.
• The loan must be taken from any financial organization or from any bank for higher education only. 

Deduction Amount for 80E Deduction

Deduction Amount for this deduction has no limit you can claim the maximum amount of Interest paid on Education loan for the financial year also if you claim the full deduction under 80C then also you can avail of this deduction with no maximum limit.

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