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interest on education loan

04 July 2018

I have paid interest on education loan taken by my son ...in which section I can claim deduction and what documents I require for it

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2 Replies

CA Sunil Kumar (Chartered Accountant) (4514 Points)
Replied 04 July 2018

If you have taken education loan and are repaying the same, then interest paid on education loan is allowed as a deduction from the total income u/s 80E.
Documents required
There is no limit on the maximum amount that is allowed as deduction. You need to obtain a certificate from your Bank. Such certificate should segregate the principal and interest portion of the education loan paid by you during the financial year.

Anjali P Nair (ACA,ACMA) (582 Points)
Replied 04 July 2018

1. You can claim deduction under Section 80 E of Income Tax Act 1961.

2. You need to obtain a certificate from your Bank. Such certificate should segregate the principal and interest portion of the education loan paid by you during the financial year.

3. The deduction for the interest on loan starts from the year in which you start repaying the loan. It is available only for 8 years starting from the year in which you start repaying the loan or until the interest is fully repaid whichever is earlier