Deduction from Taxable Income relating to interest paid on loan taken for pursuing Higher Education-

TANMOY MUKHERJI INSTITUTE OF JURIDICAL SCIENCE

Dr. Tanmoy Mukherji

Advocate

 

Deduction from Taxable Income relating to interest paid on loan taken for pursuing Higher Education-

Tanmoy Mukherji

Advocate

Education is regarded as a powerful instrument of social and economic development.

Recognizing the increasing cost of Higher Education, the Government introduced sec 80E to encourage individual to pursue professional and Higher studies without being burdened by taxation or loan interest payments.

Objectives of section 80E-

Eligibility-

Higher Education-

Higher Education means any course pursued after passing Senior Secondary Examination (12th standard).

Approved lending Institutions-

Amount of Deduction-

Duration of Deduction-

Deduction available for-

Earlier of 8 Assessment Years OR Till interest is completely repaid.

Timeline-

Working Mechanism-

Advantages of Sec 80E-

For students-

→Easier Access to Higher Education

→Encourages foreign studies

→Financial Flexibilities.

For families-

→Tax savings

→Reduced Educational burden

→Long term financial planning.

For Nation-

→Skilled work-force

→Human resource development

→Economic growth

→Innovation & Research promotion.

Section 80E is a socially beneficial provisions of Income Tax Act, 1961 that promotes Higher Education by providing tax relief on Education Loan interest.