{
  "type": "article",
  "title": "Paying off an education loan? Section 80E can wipe out tax on the entire interest you pay",
  "summary": "Interest paid on a higher education loan qualifies for a full deduction under the old tax regime, with no upper limit. Understanding Section 80E before filing your ITR can save you thousands.",
  "content": "The income tax return season is underway, and whether you draw a salary or run a business, your ITR has to be filed before 31 July. Most taxpayers now opt for the new tax regime, but if you have taken an education loan, switching to the old regime could hand you a deduction worth thousands of rupees. Before you file, it pays to understand exactly how this benefit works and how much you can claim in a single financial year.\n\nSection 80E of the Income Tax Act is what makes this possible. The relief applies to the interest paid on a higher education loan, and any taxpayer can claim it. The standout feature is that, unlike a home loan, there is no upper ceiling on the interest deduction. Whatever interest you pay over the year, the entire amount falls within the deduction. That is precisely why many consider this loan one of the most tax-friendly options available.\n\nWhose education the relief covers\nIt is a mistake to assume the deduction applies only to a loan taken for your own studies. Whether it is a regular course or a vocational one, a loan taken for any kind of education qualifies. You can take the loan for yourself, for your spouse and children, and if you are someone's legal guardian, a loan for their higher education also lets you claim the deduction.\n\nOnly the interest, never the principal\nUnder Section 80E, the full amount you pay as interest on a higher education loan becomes tax free. The entire interest paid in a financial year can be claimed as a deduction while filing your ITR. Keep one thing in mind, though, this relief is limited to the interest alone. You get no tax break on the principal portion of the loan.\n\nHow long the benefit lasts and the conditions\nThe deduction on an education loan can be claimed for a maximum of 8 years. The clock starts from the year you begin repaying the loan, and runs for the next eight years. If your loan is cleared before those 8 years are up, the deduction period ends along with it. One point is clear, if a friend or someone outside the family takes the loan, no deduction can be claimed on it. The benefit belongs only to the person actually repaying the loan. On top of that, the course you are pursuing must figure among the higher courses recognised by the government.\n\nHow to claim it in your ITR\nStart by getting an interest certificate from your bank or institution. It carries a separate breakdown of the principal and the interest you have repaid. Then, in your ITR form, go to the Deductions under Chapter VI-A option, enter the interest amount and claim the deduction. While entering this information in your ITR, you may also need to attach the interest certificate if required.\n\nWhat this means for you\n• On your wallet: If you hold an education loan, switching to the old regime lets you claim the full year's interest as a deduction, potentially saving thousands of rupees.\n• For your family: You can claim this relief on loans for your spouse, children or someone you are the legal guardian of, as long as you are the one repaying it.\n\nQuestions & Answers\n\n1. Under which section is the education loan tax deduction available?\nThe deduction comes under Section 80E of the Income Tax Act and applies to the interest on a higher education loan.\n\n2. Is there a maximum limit on the interest deduction?\nNo, unlike a home loan there is no upper ceiling. The entire interest paid during the year qualifies for the deduction.\n\n3. Does the deduction also cover the loan principal?\nNo, the relief applies only to the interest. No tax break is given on the principal amount.\n\n4. For how many years can the deduction be claimed?\nIt can be claimed for a maximum of 8 years, starting from the year you begin repaying the loan. If the loan is cleared earlier, the period ends with it.\n\n5. Whose education loan can this deduction be claimed on?\nYou can claim it on loans for yourself, your spouse, your children or someone you are the legal guardian of. Both regular and vocational courses qualify.\n\n6. What is the last date to file the ITR?\nYou must file your ITR before 31 July.\n\n7. What document is needed to claim the deduction?\nYou need an interest certificate from your bank or institution showing a separate breakdown of principal and interest, which you may have to attach to your ITR if required.",
  "url": "https://trendkia.com/en/money/ejukeshana-lona-para-taiksa-bachana-hai-dhara-80e-ki-ye-baten-itr-bharane-se-pahale-jana-len-2724",
  "category": "Money",
  "publishedAt": "2026-06-24",
  "tags": [
    "Section 80E",
    "Education Loan",
    "ITR",
    "Income Tax",
    "Tax Deduction",
    "Higher Education",
    "Old Tax Regime"
  ],
  "language": "en",
  "site": "TrendKia"
}