Section 80E deduction for interest on loan for education for asst year 2014-15

Deduction in respect of interest on loan taken for higher education (Section 80E):

Section 80E allows deduction in respect of payment of interest on loan taken from any financial institution or any approved charitable institution for higher education for the purpose of pursuing his higher education or for the purpose of higher education of his spouse or his children or the student for whom he is the legal guardian.

The deduction shall be allowed in computing the total income for the Financial year in which the employee starts paying the interest on the loan taken and immediately succeeding seven Financial years or until the Financial year in which the interest is paid in full by the employee, whichever is earlier.

For the purpose of this section -
(a) "approved charitable institution" means an institution established for charitable purposes and approved by the prescribed authority section 10(23C), or an institution referred to in section 80G(2)(a);

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;

(c) "higher education” means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority to do so;
Tags-section 80e,section 80e of income tax act,section 80e of income tax,income tax section 80e,section 80e deduction income tax,income tax deduction under section 80e,income tax deduction for interest on education,education loan deduction under section 80e
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About Nitin Aggarwal

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  1. Great to know about it, i feel interest on education loan should be less then any other loan as we should try to do something for the youth of this country if they are really willingly to get higher education, this is ultimately going to bring the bright future of our country.