It is common that students seeks loans for their education. Many people not aware that the education loans can be used for the tax deductions. From April 2007, the loans taken by self or parent or spouse is also deductible under the tax. There is separate section 80E to provide the tax exemption on the education loans. This can be availed by the parents and the students. In this article I will be writing about the tax deduction for education loans. Please post your feedback after reading the article. You can subscribe to our future articles here.
also read:
Key Points on Education Loans
- You can claim a deduction under section 80 E for the interest paid on an educational loan.
- You can claim the tax benefit only if the loan is taken in your name for the higher education yourself, spouse or children. The loan taken for brothers or sisters can not be claimed.
- Entire interest amount is deducted from the taxable income without any limit.
- Principal repayment of the education loan will not be eligible for the tax deduction.
- You can claim tax benefits for eight years after start paying the loan.
- You can claim the tax benefit only when the loan is taken from the financial institutions. If you have taken from family or employer, then it is not eligible for the tax deduction.
- The course has to be for full-time studies (no part-time courses covered) for any graduate or post graduate course in engineering, medicine, management, or for post graduate course in applied sciences or pure sciences including mathematics and statistics.
- You can find interest rates for education loans.
Summary
In this article I have listed the few important points on the education loans in India. Many banks offer education loans( eg. hdfc bank) to the students, it will be useful if you know the tax benefits on education loans. Thank you for reading this article. If you have any doubts please post it in the comments section.
You can subscribe to our future articles here.
June 11, 2009 at 12:11 am
I have started paying back my education loan from 2007-08 financial year. Can I claim a tax deduction as part of this financial year (2008-09). Is it mandatory that I should claim it in the same year of payment?
Thank you,
Raghu
August 18, 2009 at 9:50 am
I have taken an educational loan for my son for his Engineering Course. The loan will be repaid by my son after the course only from 2010-11 onwards. But I have paid the interest portion since the payment of loan instalments to the institute have commenced from 2006-07 & 2007-08 . I have not claimed any exemption on interest amount so far. I got the certificate from bank this year for the interest paid by me so far. I have filed the IT return for the fin year 2008-09 and have not claimed the rebate on int amount. Can I file a revised return and claim the benefits? Which Form should be used for filing? ITR-1 is the form for me as I am an Individual (Govt Employee), but there is no column to reflect the deduction amount. P, advise accordingly.
Thanks & regards.
Krish
September 30, 2009 at 3:43 am
Hi,
i am doing parttime MBA froM TIMSR mumbai
BOB has sanctioned my Education loan
can i claim tax rebate for self education from my total salary income
please advise
Deepak
March 11, 2010 at 8:30 am
PLEASE ADVISE ME TO CLAIM TAX DEDUCTION OR WAIVER IN EDUCATIONAL LOAN TAKEN FROM UNITED BANK OF INDIA.
March 24, 2010 at 3:16 am
Education Loan has been sanctioned by state bank for higher studies of my son on my application. The loan amount was paid thru a joint account in the name of Son & Father. Now can I claim tax benefit for the interest paid by me from my taxable income to this Education loan Account.
December 4, 2010 at 5:33 am
i have taken education loan for my son studying b.tech(ms) from USA.can i claim intt paid on ed. loan under sec-80c being intt. paid on ed. loan .DOUBT is, if intt. on loan for studying abroad is permissible.pl. guide.
thanks
December 4, 2010 at 5:35 am
i have taken education loan for my son studying b.tech(ms) from USA.can i claim intt paid on ed. loan under sec-80e being intt. paid on ed. loan .DOUBT is, if intt. on loan for studying abroad is permissible.pl. guide.
thanks
January 3, 2011 at 12:36 pm
Sir,
I have taken a loan of 2 lacs for my Graduation from a bank. I start filling my loan in Jan 2010 and amount was around 2.9 Lacs.
In the financial year ended in 2010, I didn’t submit any document for tax rebate.
By the starting of this financial year as on 01/04/2010, I have to pay 2.54 Lacs; and by the end of October I have paid 2.54 Lacs + 1600 as interest for this financial year.
My Question is what will be the amount for which I will be getting tax rebate.
I will be very Thank full to you, if you clarify my doubt, as I am getting different input from different sources.
January 13, 2011 at 12:52 pm
SIR IM TAKING AS LOAN FOR HIGHER EDUCATION LIKE MBA IN THE Yr 2009 IN SEPT. MONTH.I NEED U CLARIFY FROM YOU THAT WHAT IS THE INTEREST RATE.IS FULL INTEREST FREE IS POSSIBLE.OUR BANK MANAGER SAY ONLY 2%GOVT.SUBSIDY IS POSSIBLE.NOT MUCH MORE THAN THAT N HE SAYS IF U HAVE ANY QUARRY THEN ASK TO SUPERIOR.OUR HEAD OF THE DEPT.PLS CLEARIFY ME THIS DOUBT SIR.
February 15, 2011 at 3:04 am
hello sir,
my syster took education loan for me, and every month she is paying interest amount. is she eligible for exemption of this interest amount under 80e
February 15, 2011 at 1:50 pm
i have taken loan from Bank OF India in the year 2009-11 for mba and my colage is AICT approved .and ya also my family salary is below 3lakh pa so kindly halp me to kanow . can i claim for interest free till moratariam period . ??? kaya mera interest me muje rebate mil sakta hai ya intrest maf ho sakta hai kaya kindly let me kanow agar ha to me kise contact karu is bat ko janane ke liy…..
February 20, 2011 at 2:23 am
Sir,
I had taken the educational loan for my post-graduate course,from 2006 to 2009…I started repaying the loan and its interest from 2009 (payiny the monthly interest and part of the principal amount)…….
I have two queries now…
1)Is , payment of interest and part of principal amt (paid by me during 2010-11) tax exempted? kindly mention the rule?
2) I have not taken the benefit of tax exemption for the year 2009-10(for educational loan interest).. Can i take that this year 2010-1011 or should i refile it…
3)Is the interest enforced on the principal amount from 2006 to 2009 tax exempted??? I haven’t paid any interest during 2006-2009,the interst amt was added to the principal amt.Now can i pay that interest of three years , and get tax exemption on that sir ???
February 25, 2011 at 4:59 am
Sir,
Really hearty thanks for bringing this Scheme for the people.
I have taken education loan in year 2006. I have paid the interest till last year properly. But unfortunately due to some personal constraints I couldnt able to pay interest continuously this year.
I need to know the followings:
1. Do this Scheme is applied for people who have taken education loan during year 2006 to 2007 ?? (understood this scheme is applied only if they have income less than 4.5 lakh per annum)
2. If this Scheme is not applied for those taken loan during 2006 to 2007 but their income also lies below 4 lakh per annum, do there is any way to waive their remaining interest ??
Please do answer my above questions Sir.
Thanks in Advance.
March 10, 2011 at 2:57 am
Sir,
I had taken the educational loan for my post-graduate course,from 2006 to 2009…I started repaying the loan and its interest from 2010 (payiny the monthly interest and part of the principal amount)…….
I have two queries now…
1)Are payment of interest and part of principal amt (paid by me during 2010-11) both tax exempted? kindly mention the rule?
2)I haven’t paid any interest during 2006-2009,the interst amt was added to the principal amt.Now can i pay that interest of three years , and get tax exemption on that sir ???
April 28, 2011 at 6:35 am
sir, annual income of my house is less than 1 lac from all sources. how much amount i will have to pay as interest.i am to take admission in iipm.
thanking you sir.
July 4, 2011 at 9:53 pm
I just completed b.tech from jnt University off-campus center. I have taken loan (Rs.2,00,000) from Syndicate Bank from the academic year 2006-2010. My loan repayment will start from July 2011. Now my Interest with principal amount is Rs.250000
I want to know am I eligible for this interest free scheme?
How much interest and principal amount i will pay after july2011?
plsssssss inform by mail
August 29, 2011 at 5:26 am
i want to know the details of the banks which provide interest free education loans please help me.if any one gets the detail about these please inform me.
October 4, 2011 at 12:03 am
sir, my wife took education loan of 2.3 lakhs in 2007 and 2008 for her higher education (m.d).as of today the amount with interest is 2.95 lakhs.she finished her course in may 2011.we want to pay the loan back.is there any way to reduce the interest amount ?.and is there any tax excemption we camn claim for?.pls advice
December 27, 2011 at 5:46 am
Sir, i took education loan of 2.15 lakhs in June 2008 for B-Tech(Cse) by Syndicate bank
It will complete in Aug 2012,
i have paid some interest with my fees by interest rate of 12%
is there any way to get some concession in the interest as subsidry or some other way
December 29, 2011 at 9:38 am
Thanks a lot as I came to know about deduction under 80E for ed.loan taken by my ward.
With regards
malina
January 11, 2012 at 9:32 am
I understand, ur blog is meant for advertising u.You wouldn’t be ever answering people query here for free.
January 11, 2012 at 9:33 am
Fcuk YOu!!
February 18, 2012 at 1:14 pm
it is better step to increase high education in india
February 18, 2012 at 1:19 pm
better step by goverment
i pride who suggest this idea of exemption on education loan
it is true
VIDYADAN MAHADAN