Claim audit · FY 2026-27
“The entire education loan EMI is deductible under section 80E”
The condition that decides it
Only the interest portion is deductible — principal is not — for 8 consecutive years from the first repayment year, on a loan for higher education after 10+2 from an approved lender, and only in the old regime.
What the department sees
MEDIUM
Data the Income-tax Department already receives automatically — the reel doesn't mention this part.
The real math
A graduate's education loan of ₹12,00,000 carries a monthly EMI of ₹15,600, of which ₹8,000 is interest and ₹7,600 is principal in the first year, so the annual interest is ₹96,000. Under section 80E, only the ₹96,000 of interest is deductible; the ₹91,200 of principal repaid in the same year is not. The deduction runs for 8 consecutive years from the year repayment begins, even if the loan is not fully repaid by then — a 15-year loan still exhausts the 80E window in year 8. The loan must be for the taxpayer's own or the spouse's, children's or legal ward's higher education after the 10+2 level, from a scheduled bank, a notified financial institution or an approved charitable institution; a loan from a private moneylender qualifies for nothing. If the loan is in the parent's name, the parent claims the deduction and the child cannot. In the new tax regime, section 80E is disallowed entirely, so a new-regime filer receives no relief on the ₹96,000. Claiming the full EMI instead of the interest alone overstates the deduction and invites a rectification or scrutiny adjustment.
Questions people actually ask
There's a right way to do this
How do I claim the education loan interest deduction under 80E?
Sections: 80E · We audit claims, not creators. Reviewed by Harun Raaj & Associates, Chartered Accountants · All audited claims