Section 80E: Deduction for Interest on Education Loan

Section 80E of the Income Tax Act provides a deduction for interest paid on education loans, easing the financial burden for individuals pursuing higher studies. Only individuals, not HUFs or companies, can claim this deduction.

The loan must be taken from a recognized financial institution or approved charitable organization. Deduction is applicable solely to the interest paid, not the principal amount.

The benefit can be claimed for a maximum of 8 consecutive years from the start of loan repayment. There is no upper limit on the amount of interest that can be claimed under this provision.

This deduction is not available under the new tax regime introduced recently. Correct ITR form selection and proper documentation, including loan and interest certificates, are crucial for claiming this deduction.