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Procedure: How to Claim Tax Benefits on Education Loan
February 06 , 2013
  1. Educating yourself is rewarding, even if it means taking reasonable loan to sponsor it. Tax break is available on interest on education loan taken for you, spouse, kids or anyone whose legal guardian you are. Your taxable income reduces by the amount of interest on education loan. This does not apply to principal on education loan.
  2. Section 80 E offers this rebate. Loan should have taken for higher education. Higher education means any course pursued after Senior Secondary Examination of a recognized school, board or university. It includes full time graduate or post graduate courses in engineering, medicine, management or post graduate courses in pure sciences including mathematics and statistics.
  3. Education loan tax rebate applies to loan taken from a financial institution or charitable organization. You can claim tax rebate for 8 successive years once you start repayment.
  1. ITR form can be downloaded from www.incometaxindiaefiling.gov.in. Choose the one relevant to your source/s of income.
  2. You would have received bank statement with details of interest and principal component of your education loan. Put the interest amount in the cell for 80 E rebate under 'Deductions under Chapter VI A'. You can claim rebate for interest paid in the previous financial year. There is no cap on the extent of rebate on interest. Also remember this rebate can be availed by the person in whose name the loan is.

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