Do you have taken Education loan for your Higher education or you are salaried or your parents providing funding for your education then you can apply for Tax Benefit. Your Education loan is free from Taxes in India and you can claim for Tax benefit on it as per the role of Section 80E of the Income Tax Act, 1961.
Case study point for eligibility of Education loan Tax Deduction under Section 80E:
Who not eligible:
o Education loan for part time or basic course
o Education loan taken from friends, family members or brokers
When to claim the Income Tax Deduction for education loan
o You can claim when your repayment of loan starts
o You can claim when your payment of interest is done completely
o You can claim while repayment of loan for the period of time
o To take benefits on education loan you need inform your company’s HR/accounts, office accounts department so that they can minus TDS from your salary.
o You can claim for your tax deduction at point of filing income tax returns.
Download This Tax Benefit Guide for Study abroad or Indian Education Loan