Moment guide · FY 2026-27
I am paying interest on an education loan
How do I claim the education loan interest deduction under 80E?
Section 80E deducts the ENTIRE interest on an education loan for yourself, your spouse, your children or a legal ward's higher education after 10+2, with no monetary cap, for 8 consecutive years from the year repayment starts. Principal repayment is not deductible, and 80E is not available in the new regime.
Your legitimate options
Every route the statute actually gives you — with its condition, cap and deadline.
| Route | Condition | Cap / deadline |
|---|---|---|
| Full interest deductible | The entire interest on the education loan is deductible — there is no monetary cap | Only interest, not principal |
| 8 consecutive years | The deduction runs for 8 consecutive years from the year you start repaying | Years lapse even if the loan is not fully repaid |
| Eligible borrowers | The loan must be for yourself, your spouse, your children or a legal ward's higher education after 10+2 | From an approved bank or institution |
The #1 trap
Claiming 80E on the principal repayment — only the interest is deductible, and the 8-year clock starts from the year repayment begins, not from loan disbursement or course completion. Also, the loan must be for higher education after 10+2 from an approved institution, and 80E does not work in the new regime.
The decision path
Follow it top to bottom — the first condition that matches is your answer.
Worked example
Neha, whose son is repaying a study loan
Neha's son took an education loan of ₹12,00,000 for a post-10+2 engineering degree from a scheduled bank. The loan is in the son's name, and he starts repaying in FY 2023-24, with interest of ₹96,000 in FY 2025-26. Under section 80E, the ENTIRE ₹96,000 of interest is deductible in the son's return — there is no monetary cap — while the principal repayment of ₹60,000 is not deductible. The 8-year window runs from the year repayment began, FY 2023-24, so the deduction is available for FY 2023-24 through FY 2030-31, eight consecutive years, even if the loan is not fully repaid by then; the clock does not restart. If Neha's son had taken the loan before completing 10+2, or for a course not qualifying as higher education, the deduction would fail. Neha herself co-signed the loan but is not a borrower in her own name; if she had taken the loan for her son's education, she could claim 80E in her own return, because loans for a child's higher education qualify. If the son opts for the new regime, the 80E deduction disappears, so he compares regimes each year. He keeps the loan sanction letter, the interest certificates issued by the bank and the repayment schedule for the claim. A quick call with us dials in the final figure. Neha's son also confirms that the loan must be taken from an approved lender — a scheduled bank, a notified financial institution or an approved charitable institution — and a loan from a private moneylender does not qualify. The interest certificate issued by the bank states the interest paid in the year, and the claim is limited to that figure, not the EMI amount. If the loan is in the parent's name for the child's education, the parent claims the deduction in the parent's return, and the child cannot claim the same interest. The 8-year window runs from the first repayment year, and if the repayment is deferred during a study break or a grace period, the clock starts only when the first repayment is actually made. If the loan is refinanced with another bank, the new loan continues the same 8-year window, and the interest certificates from both banks are combined. A quick call with us dials in the final figure.
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Sections: 80E · Last verified 2026-08-11 · Reviewed by Harun Raaj & Associates, Chartered Accountants. Every figure cites the Income-tax Act, 1961 (with ITA 2025 mapping via our section index).