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How to read section numbers: s.80C→s.123 means Section 80C of the Income-tax Act, 1961 is now Section 123 of the Income-tax Act, 2025 (in force from 1 April 2026). Returns for FY 2025-26 still use the old numbers; Tax Year 2026-27 onwards uses the new ones. Section Finder
Who can claim
An individual who took the loan for the higher education of self, spouse, children, or a student for whom they are the legal guardian. The deduction belongs to the person who repays — if a parent pays a loan taken in the child's name, check whose name the loan is in; the borrower usually claims it.
Key rules
- Only interest is deductible; principal repayment gets no deduction here
- Higher education means any course after Senior Secondary — in India or abroad
- Loans from relatives or employers do not qualify
- Old regime only
Worked example
Example
Example: Karan repays ₹1,20,000 interest in the first year of repayment. He deducts the whole ₹1,20,000 under 80E, on top of his ₹1.5 lakh 80C, in the old regime.
Common mistakes
- Claiming principal
- Claiming beyond the 8-year window
- Claiming for a loan from a friend or relative
Frequently asked questions
From the financial (tax) year in which you start paying interest, or the next 7 years after it, whichever ends first.
Last reviewed on 11 November 2026 by Vinay Jaglan, VJ & Associates. Law and portal screens change — verify before acting, or ask the office.
