How to get tax exemption on education loan?

Often people take education loan for the education of their children. However, while filing income tax, many people are not aware that they can also take advantage of income tax exemption on education loan. Let us know how income tax exemption can be availed on education loan.

The benefit of income tax exemption can be availed on the interest paid on the education loan. This benefit can be availed under section 80E of the Income Tax Act. However, for such exemption, it is also necessary to fulfill some important conditions. There is no maximum tax exemption limit under education loan.

The important condition is that the education loan should be taken from a bank or any financial institution through a woman, her husband or children for pursuing higher education in India or abroad. The exemption can be availed from the year the loan is repaid.

tax exemption

On the other hand, if someone has taken an education loan for more than one of his children, then tax exemption can be taken on the interest paid on the education loan of both the children. This tax exemption can be availed under 80E. At the same time, this time the income tax return for the financial year 2020-21 is to be filed by 30 September.

Also read: PPF Account: How many times can you extend the duration of PPF account, know the rules


Leave a Reply

Your email address will not be published. Required fields are marked *