Exemption u/s 80e

1. Only interest portion is eligible for deduction u/s 80E
2. No deduction is available under u/s 80C

Originally posted by : Poornima Madhava

Only interest portion is eligible for deduction u/s 80E
No deduction is available under u/s 80C



 

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. There is no cap on the amount of interest on which one can claim tax Exemption: your entire interest outgo on an education loan is eligible for deduction.

Loan should be taken by individual for pursuing higher education of self, spouse or his /her children’s or for the student of whom you are legal guardian. Hence parents are also eligible to claim deduction of interest paid by them on loan taken for their children’s education

But you can calim deduction for tution fees u/s 80-C.

@ Vishal: 80C deduction in respect of tuition fee is available only for payments to educational institutions/universities etc situated in India https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx

Yes you are right Ma'am 
Thanks for correcting me..