Section 80E of Income Tax Act

What Is Section 80E?

What Is the Amount Deductible Under Section 80E?

 

There is no specified limit on education loan deduction under section 80E. Therefore, the tax benefits on interest payment aren’t affected by the principal amount and interest rate levied by lending institutions.

Here is a table to explain how Section 80E calculation for deduction works. This amount can vary according to income and other particulars.

Particulars

Amount

Income of an individual

₹ 5,00,000

Subtracted- Interest repaid (80E deduction)

₹ 1,00,000

Net Taxable Income

₹ 4,00,000

The interest repaid on an education loan is subtracted from one’s total gross income. This gives the result of reduced income tax.

However, to claim this benefit, you need to fulfil certain 80E eligibility parameters.

Who Is Eligible to Claim Tax Deductions Under Section 80E?

What Are the Documents Required to Claim Deductions Under Section 80E?

Frequently Asked Questions