Deduction u/s 80E in respect of interest on loan taken for higher education.
|2a||Eligible Lender||any financial institution which means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf; or|
|2b.||any approved charitable institution which means an institution specified in, or, as the case may be, an institution established for charitable purposes and approved by the prescribed authority under section 10(23C)or an institution referred to in section 80G(2)(a);|
|3||Purpose||Higher Education which means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;|
|4||Eligible Student||of self, spouse and children of that individual or the student for whom the individual is the legal guardian.|
|5||Amount of deduction||any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan taken by him|
|6||Commencement||from “initial assessment year” which is the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan|
|7||Term of deduction||Earlier of
(a) Eight years including initial assessment year or
(b) the year in which interest has been repaid in full.