Is the principal amount of education loan allowed as deduction under any of the sections

Section 80E only talks about deduction of Interest part. Principal repayment is not covered.

There is no tax benefit for principal repayment of education loan.

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Matter is governed by s.80E and wording of section is very clear and unambiguous which provide that “In computing the total income of an assessee,…….., there shall be deducted, ……………………………….any amount paid by him in the previous year,……………………….by way of interest on loan taken by him from any financial institution or approved charitable institution for the purpose of pursuing higher education or for the purpose of higher education of his relative…..”

So, there is no scope for claiming deduction of repayment of principal amount.  Generally, also scheme of the act while allowing deductions in connection with loan obtained for businesses or other purpose is that only interest component will be allowed by way of deduction.