Subscription 
What Income Tax (IT) relief's can be claimed for repayment of educational loans?- 5-Mar-2008
Under Section 80 E of the IT Act, a deduction will be allowed in respect of repayment of loan taken for higher education, subject to the following conditions: In computing the total income of an assessee, being an individual, these shall be deducted, in accordance with, and subject to, the provisions of this section: any amount paid by him in the previous year, out of his income chargeable to tax, by way of repayment of loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his/her higher education, or interest on such loan, provided that the amount that may be so deducted shall not exceed Rs 25,000. The deduction specified above shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or untill the loan referred to above, together with the interest thereon, is paid by the assessee in full, whichever is earlier.
