An education loan deduction is a tax incentive given to people who avail of loans for higher studies. This deduction is available only on the interest amount paid on the loan and not on the principal amount. Education Loan deduction can be claimed for a maximum of eight years, starting from the year in which interest repayment begins.
The loan should be taken for the higher education of self, spouse, or children or for a student for whom the individual is a legal guardian.
Steps to Claim Deduction
- Navigate to File > Deductions
- Select Section 80E card
- Enter the interest paid during the year
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