Deduction under 80e

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dheeraj kumar

dheeraj kumar (Querist)
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11 March 2014 pl explain the deduction under section 80E

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Dheeraj Kumar

Anand Dad

Anand Dad (Expert)
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11 March 2014 Only interest paid on an educational loan is allowed as deduction u/s. 80E of The Income Tax
Act, 1961, out of his/her income chargeable to tax i.e. Deduction will be allowed only when actual
interest is paid.
Loan should be taken by individual for pursuing higher education of self, spouse or his /her
children’s. Hence parents are also eligible to claim deduction of interest paid by them on
loan taken for their children’s education.
Loan should be taken from approved financial institution or from institution
established for charitable purposes and approved by the prescribed authority under clause (23C) of
section 10 or an institution referred to in clause (a) of sub-section (2) of section 80G.
Loan should be for full-time studies for any graduate or postgraduate course in engineering,
medicine, management or for post-graduate course in applied sciences or pure sciences including
mathematics and statistics
Deduction is allowed for a continuous period of eight years, starting with initial assessment year in
which the assessee starts paying the interest on the loan or until the interest is paid in full
whichever is earlier.

dheeraj kumar

dheeraj kumar (Querist)
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12 March 2014 whether this deduction is in addition to 80c

whether there is any limit on amount of deduction

pl reply

Anand Dad

Anand Dad (Expert)
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12 March 2014 No this section is not included in the limit of 80C.

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