Deduction for interest paid on education loans taken for higher education. There is no upper limit on the deduction amount. Available only to individuals, not HUFs.
Key Conditions
- Loan must be from a bank, financial institution, or approved charitable institution
- Covers higher education in India or abroad
- Available for 8 years from start of repayment or until interest fully paid
- No deduction on principal repayment — only interest
- Only for individuals (not HUFs)
Who can benefit?
- The individual (for their own higher education)
- Spouse or children of the individual
- Student for whom the individual is a legal guardian
This guide reflects FY 2025-26 (AY 2026-27) and is for general information. Tax rules and limits change, and how they apply depends on your circumstances. It is not professional tax advice; consult a qualified Chartered Accountant before acting.
