Section 80E Deduction
Section 80E Deduction is allowed for interest on loan taken by taxpayer from any banking company, notified financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his relative.Calculate 80E Deduction
Deduction for educational loan taken for higher education
Definition of Higher Education under Section 80E
'Higher education' means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so.
Who can claim Section 80E deduction ?
'Relative', in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian. The deduction shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier. 'Initial assessment year' means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.