5 smart things to know about tax breaks on education loan
Posted by: Labdhi Mehta on Jul 02, 2018, 06.30 AM IST
1. To claim deduction, the loan should be taken from a bank or a qualified institution for higher education of self, spouse or children or the student for whom the individual is a legal guardian. 2. Higher education can be in any field after passing the senior secondary examination or its equivalent exam. It includes both the vocational courses and the regular courses. 3. Only the total interest part of the EMI paid during the financial year is allowed as deduction. No tax benefit is allowed for the principal repayment. 4. There is no limit on the maximum amount that is allowed as dedcution. 5. The deduction for the interest on loan starts from the year of repayment and is available only for eight years or until the interest is fully repaid, whichever is earlier.
(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)