• May
  • 06
  • 2015

Section 80E -Tax Concession on Education Loan

Posted In Income Tax | , | 14 Comments » Print Friendly and PDF

Section 80E of the Income-tax Act, 1961 provides that in computing the total income of an individual, their shall be allowed a deduction of the amount paid by way of interest on loan taken by him from any financial institution or approved charitable institution for the purpose of pursuing his own higher education or higher education of his spouse, or children, or the student for whom he is the legal guardian.

The deduction is available for eight assessment years beginning with the assessment year in which the payment of interest on such loan is first made or until the interest is paid in full, whichever is earlier. This deduction is available to every individual who is liable to income-tax.

Under the earlier provisions, the deduction was available only for pursuing full time studies for any graduate or post-graduate course in engineering, medicine, management or for post-graduate course in applied sciences or pure sciences including mathematics and statistics.

The provisions of the aforesaid section 80E were amended vide the Finance (No. 2) Act, 2009 by substitution clause ( c ) of sub-section (3) so as to extend its scope to cover all fields of studies (including vocational studies) pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so.


14 Responses to “Section 80E -Tax Concession on Education Loan”

  1. Vikas G says:

    Hi. Can a discontinued higher education be also claimed under this section? Thanks

  2. Vikas G says:

    If the higher studies is discontinued, can the interest on loan still be claimed under this section? Thanks.

  3. bharat says:

    Dear Pankaj

    if your son is going for education abroad for graduate or postgraduate program related to science and any other mathematics related field then you can take loan as education loan from any bank.

    Bharat Singhal AFP
    8467847063

  4. PANKAJ says:

    I WANT TO TAKE LOAN FOR MY SON,WHO IS WILLING TO STUDY ABROAD.CAN I GET BENEFIT
    OF SEC 80E ? PL REPLY ME SOON
    PANKAJ
    MOB:09825078901

  5. CA Kapil says:

    PARAMJEET SINGH
    YES EMPLOYER SHALL CONSIDER INTEREST AMOUNT US80E , IF YOU GIVE EVIDENCE FOR THE SAME.

  6. CA Kapil says:

    HI ADITYA,
    UNDER SEC.80E DEDECTION IS ONLY ALLOWED ONLY ON PAYMENT BASIS. AS YOU MENTION THAT YOU HAVE NOT YET PAID ANY RUPEE OF INTEREST , NOW YOU ARE STARTING FOR PAYING SO NOW YOU ARE ELIGIBLE FOR DEDECTION U/S 80E FOR WHOLE INTETEST WHICH YOU HAVE PAID WHTERE AMOUNT RELATED TO EARLIER YEAR’S

  7. CA Kapil says:

    RAM SHINDEY
    YES YOU CAN AVAIL TAX DEDUCTION U/S 80C. AS YOU MENTION THAT YOU ARE CO BOROWER & YOU HAVE TAKEN EDUCATION LOAN FOR YOUR SON(WHETHER MINOR OR MAJOR,THIS COMPARISON IS IRRELEVENT), BUT AS PER BANK POLICY AFTER SON JOB I INTEREST WILL PAYABLE BY SON IN THAT CASE YOU CAN’T AVAIL THE DEDUCTION U/S 80E.

  8. CA Kapil says:

    Hi rahul, as you say that ,you have taken education loan for your brother.
    as per the incometax law deduction u/s 80E is aloowed only for loan applied for In dividual himself or his spouse or his child including adopted child education.
    in your case you have taken loan for his brother so you can’t avail exemption u/s 80E

  9. Rahul Verma says:

    Hi,

    I have taken a education loan for my younger brother study, I am the co-borrower, am I eligible for 80E deduction while computing income tax.

    Regards
    Rahul Verma

  10. RAM SHINDE says:

    I have taken education loan for my son in 2012 I am co-borrower and repaying interest now. After education, my son got job, is it compulsory to pay the loan by him only. I want to repay the loan and avail tax rebate.

  11. ADITYA says:

    i hv taken an education loan in 2010 for my higher studies ,i have not paid any single Rupees to the bank till date . Now i am planning to pay the whole amount with interest in 2014-15 , i want to know that ALL THE INTEREST PAID BY ME IS COMING UNDER TAX SAVINGS SCHEME U/S 80E OR ONLY THE INTEREST OF FINANCIAL YEAR 2014-15.

  12. Govindaraddi Naragund says:

    I took 40,000 rupees loan from vijaya bank for My education.Now i am working in private company .Now i am paying whole amount(amount + interest) once, without EMI. Can i show this amount for tax concession?? Please Reply.

  13. Nidhi Mathew says:

    I have a query regarding S. 80 (e) Exemption under the IT Act. I availed an education loan in 2010 and have started working now. My office has categorized my employment as a “professional” and not as a salaried employee. I want to know whether as a professional fee earner (they pay me a retainer fee) if I can use this deduction. If not, are there any other methods that I can claim a deduction under the IT Act as a professional fee earner. Can I make an application to the regional AO to grant a certificate for exemption of TDS or will I have to file and claim taxes at the end of the financial year.  Thanks.

  14. Paramjeet Singh says:

    Can an employer consider this education loan interest of an employee while calculating his / her salary Income Tax u/s 16. Thanks

Leave a Reply

GET FREE EMAIL UPDATES