Deduction in respect of Interest on Loan taken for Higher Education
Deduction in respect of Interest on Loan taken for Higher Education (80E)
Amount paid by way of interest on loan taken for the purpose of higher education of relatives of individual (spouse, his children or for the student for which the individual is the legal guardian) from any financial institution or approved charitable institution is allowed as deduction.
Deduction will be available for the initial assessment year and seven assessment years succeeding the initial assessment year or until the interest is fully paid, whichever is earlier.
Maximum limit of deduction (including interest) on loan is rs 40,000
Here, Higher education means: any course of study pursued after passing senior secondary examination or its equivalent from any school, board or university recognized by the central or state government or local authority or by any other, authorized to do so.