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Dear Experts,
One query please.
Is deduction on account of interest on education loan admissible under Income Tax Act ? If so, under which Section of Income Tax Act ? Pl. reply.
Thanks a lot in advance.
DEDUCTION OF INTEREST ON EDUCATION LOAN IN INCOME TAX ACT
29 Jul 2023 
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Deduction for education loan interest permitted under section 80E, limited to interest and subject to repayment and eligibility conditions.
Deduction under Section 80E permits deduction only for interest paid on an education loan; principal is not deductible. No monetary cap applies. The loan must finance higher education (expanded definition from 01-04-2010) for the assessee or specified relatives, and must be from a qualifying financial institution. The deduction is available in the initial assessment year when interest repayment starts and for the seven succeeding assessment years or until interest is fully paid. A repayment certificate showing principal and interest breakup is required to substantiate the claim. (AI Summary)
Deduction under Section 80E permits deduction only for interest paid on an education loan; principal is not deductible. No monetary cap applies. The loan must finance higher education (expanded definition from 01-04-2010) for the assessee or specified relatives, and must be from a qualifying financial institution. The deduction is available in the initial assessment year when interest repayment starts and for the seven succeeding assessment years or until interest is fully paid. A repayment certificate showing principal and interest breakup is required to substantiate the claim. (AI Summary)