Section 80 E - Income Tax Act, 1961:
Applicable to: Individuals
- Interest paid on the loan for higher education
- No, there is no limit.
- PRINCIPAL is not allowed as deduction
Deduction available to whom?
- To self or dependants - like spouse and children
- This deduction is allowed for the initial year (Year of commencement of payment of interest) and immediately succeeding 7 A.Y.s
- Until the interest is paid - WHICEVER IS EARLIER.
Note: 'Higher education' means any full time course of graduate or post graduate course. After +2 full time course would be eligible for it. The study can be anywhere in the world and not necessary to be in India.