Education Loan Interest (80E)

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Deduction for Education Loan Interest under Section 80E

To claim deduction under Section 80E, please click on "Other Deductions" tab and then "Edu. Loan-80E" sub-tab.

As soon as you click on the icon on top of the right extreme column in the table, you will see a row with blank fields. Please click on the respective cells to update information on interest payment on loan taken for higher education under Section 80E.

You can create as many rows as you wish to enter details in the respective fields by clicking the icon. If you wish to delete any of the rows, you could do so by clicking on the icon at the end of the row.

Field	Instruction
Tax Rebate	Please select the appropriate tax rebate for which you wish to make the declaration by using the drop down.
Amount	Please enter the total amount of payment. The amount can have a maximum of 2 decimal places.

How Does Education Loan Interest Reduce Your Tax?

You are eligible to claim tax rebate for availing the educational loan, provided the loan is taken for self, spouse or children. The person taking the educational loan will be eligible for deduction (you would get the tax benefits even if you take the loan for your spouse or kids) and there is no limit prescribed under IT act, however deductions is limited to gross total income.
Tax benefit is available for study loan under Section 80E provided the loan is taken from approved financial institution.
The benefit starts from the year in which you start repaying your education loan for seven years following it.
Deductions eligible under Section 80E is allowed for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics, for full time courses only and tax benefit is not available for part-time courses.

Proof Submission for Education Loan Interest

The details for the various investment options along with the required proofs and guidelines are given below for your ready reference.

Under Section 80E

Proof to be submitted

Guidelines

Education Loan Interest Benefit

Letter / certificate from the Bank / Financial Institution specifying the following:

The loan is an educational loan
Amount of interest paid on the loan in the current year

Interest paid for the first 8 years on loans taken for Higher Education such as Engineering / Medical etc
Eligible only if loan is availed by the employee/children for pursuing his / her higher education
Loans availed only from FI /Bank only is eligible.
No Limit

Interest paid in the current year only