Educational Loan Repayment : Consider These 5 Points..!

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.

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