With respect to Educational Loan Repayment the
following is the deduction available in deduction in Income Tax (IT):
(1). Deduction on Repayment of Interest on
Education Loan is allowed as deduction Under section 80 E for an Individual and
there is no cap on the deduction.
The assessee can deduct the entire Interest on
Educational Loan from his Income. Deduction can be made only if the Interest
Paid.
(2). 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;
(3). Repayment of Principle amount - NO
DEDUCTION.
(4). The Assessee avail the deduction for the
purpose of pursuing higher studies of self, spouse, children or / the children
whom he / she is guardian.
(5). Deduction shall be allowed in computing the
total income in respect of the initial assessment year and 7 assessment years
immediately succeeding the initial assessment year or until the interest is
paid by the assessee in full, whichever is earlier.
