Section 80E - Payment towards interest on education loan

Eligibility

A deduction is available from the Gross Total Income for a person who has incurred expenditure 

towards payment of interest on education loan from an approved Financial Institution for 

pursuing 

higher education for self.

Further, effective April 1, 2008, deduction will be available to the individual if he incurs an 

expenditure towards payment of interest on education loan from an approved Financial 

Institution 

for pursuing higher education for self, his spouse or children.

Amount of deduction:

The deduction is available to the extent of actual amount paid as interest on education loan 

during the year.

However, the deduction for payment of interest paid on education loan is available for eight 

years starting from the year in which the individual starts paying the interest on the loan.