Every rupee of eligible deduction reduces the income on which you pay tax. Section 80E of the Income-tax Act, 1961 is one such provision, and using it correctly can meaningfully lower your tax bill.

This guide explains Section 80E in plain language — the deduction limit, who can claim it, what is covered, the documents to keep, and the exact steps to claim it in your ITR.

What is 80E?

Section 80E allows a deduction for the entire interest paid on a loan taken for higher education, for yourself, your spouse, your children or a student for whom you are the legal guardian.

How much can you claim?

No monetary cap — the full interest paid is deductible. Available for a maximum of 8 consecutive years (or until the interest is fully repaid, whichever is earlier).

Who is eligible

  • Only individuals (not HUFs).
  • Loan must be taken from a bank or approved financial/charitable institution.
  • Available under the old regime.

What is covered

  • Interest on a higher-education loan for self, spouse, children or a ward.

Documents and proof to keep

  • Loan interest certificate from the lender showing the interest component.

Retain these documents even though they are not attached to the return — the tax department can ask for them during processing or assessment.

8-year window

If your first interest payment is in FY 2024-25, you can claim 80E from that year up to FY 2031-32 (8 years), provided the loan is still being serviced.

Points to remember

  • Only the interest — not the principal — qualifies under 80E.

How to claim it in your ITR

  1. Gather proof. Collect the certificates, receipts or statements listed above for the financial year.
  2. Choose the right regime. Opt for the old regime in your return, otherwise the deduction will not apply.
  3. Enter the amount. Report the eligible amount against Section 80E in the deductions schedule of your ITR on the income-tax e-filing portal.
  4. Verify and file. Cross-check against Form 26AS / AIS, then submit and e-verify the return within the prescribed time.

Frequently asked questions

Is there a limit on the interest amount?

No. Unlike 80C, there is no cap on the deductible interest under 80E.

Does a loan from a relative qualify?

No. The loan must be from a scheduled bank or a notified financial/charitable institution.