Education Loan Tax Benefits Under Section 80E

Section 80E of the Income Tax Act lets you deduct the entire interest paid on an education loan from your taxable income, with no upper limit.

Key rules

The deduction applies to interest only (not principal), for up to 8 assessment years or until the interest is fully paid, whichever is earlier. The loan must be for higher education from an approved institution.

• Only the interest component qualifies
• Available for up to 8 years from the start of repayment
• No maximum limit on the deduction amount
• Loan can be for yourself, spouse, children or a ward