What Are Requirements to Take Benefit of Section 80E

Section 80E is regarding interst on 'Education loan'.

As per Section 80EE, the cost of property should not exceed Rs. 50 lakhs and the loan amount should not exceed Rs. 35 lakhs.

As per section 80EEA, the stamp duty value should not exceed Rs. 45 lakhs.

There are numerous other conditions to be fulfilled in order to claim deductions in the above sections.

The eligibility criteria for deduction under Section 80E is as follows: Any individual applying for a loan for further studies or higher education for himself or on behalf of their spouse, children or student for whom the individual is the legal guardian.

Section 80E provides a deduction on interest paid on loans taken for higher education. 

Further, 80EEand 80EEA provide income tax deductions on the interest paid for purchasing a residential property through a loan. Some of the conditions associated with 80EE are:

• Value of the house should be Rs 50 lakh or less
• Loan taken for the house must be Rs 35 lakh or less
• The loan must be sanctioned by a financial institution or a housing finance company
• The loan must be sanctioned between the specified period
• As of the date of the sanction of the loan, no other house property must be owned by you
• Maximum deduction of Rs. 1,50,000

If you are looking for a deduction u/s 80EEA, then you are not eligible. 

 

Thanks for the answer. I need further clarification in the above given situation  How Much benefit the employee can get.

One more situattion if the loan amount is  30 Laks and the property costs 40 Laks ( Interest paid is 2.10  lakh ) then how much benefit is allowed