Deduction in respect of interest on loan taken for higher education - (New) Section 129 / (Old) Section 80E

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....) Condition for Deduction • The deduction covers only the interest component of the education loan. • The deduction is allowed only on actual payment.  • The loan must be taken from either: • a financial institution, or • an approved charitable institution. • Loan taken is for the purpose of pursuing higher education of himself or his relative; and • Repayment of Loan is made out of his income chargeable to tax. Period for Which Deduction is Available [ Section 129(2) ] The deduction shall be allowed in computing the total income in respect of the initial tax year and seven tax years immediately succeeding the in....

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....n 80E is available to an individual if following conditions are satisfied: • The deduction is available only to Individual not to HUF or other type of Assessee. • The Individual must have taken a loan from: (a) Any financial institution, or (b) Any approved charitable institution  • Loan should have been taken for the purpose of pursuing higher studies of Individual, Spouse, Children of Individual or of the student of whom individual is legal Guardian. Hence parents are also eligible to claim deduction of interest paid by them on loan taken for their children's education. • Amount of Deduction: The amount of interest paid is el....