Chartered Accountant
1725 Points
Posted on 01 August 2016
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.