Section 80E: Education Loan Interest Deduction for FY 2025-26

Who can claim and for whom

• Only individuals can claim 80E (not HUFs or companies), and only the person who took the loan and pays the interest.
• The loan must fund the higher education of: yourself, your spouse, your children, or a student for whom you are the legal guardian.
• "Higher education" means any course pursued after passing the senior secondary (Class 12) examination or its equivalent — in India or abroad, including vocational courses.

Conditions for the loan

• The loan must come from a bank, a notified financial institution, or an approved charitable institution.
• Loans from friends, relatives or employers do not qualify.
• Only the interest portion of the EMI is deductible; the principal gets no benefit under 80E (and no benefit under 80C either).
• Interest should actually be paid during the year out of your income — accrued but unpaid interest cannot be claimed.

The 8-year window

• The deduction runs from the assessment year in which you first pay interest, and for the next 7 assessment years — 8 years in total — or until the interest is fully repaid, whichever is earlier.
• Interest paid beyond the 8-year window earns no deduction, so repaying faster concentrates the benefit.
• If you pay no interest during a moratorium year, the clock has not started — it begins only with the first actual interest payment.
• There is no condition on the loan amount, the course fee or the country of study — only the lender type and purpose matter.

Section 80E at a glance

Feature	Rule
Who can claim	Individuals only (not HUFs or companies)
Whose education	Self, spouse, children, or a student you are legal guardian of
Eligible lender	Bank, notified financial institution or approved charitable institution
What qualifies	Interest actually paid during the year (principal gets nothing)
Maximum deduction	No upper limit
Period	Up to 8 assessment years from the first interest payment
Regime	Old regime only

Worked examples

Old regime vs new regime

• Section 80E is available only under the old tax regime. The new (default) regime does not allow it.
• If your education loan interest is substantial, the old regime often wins — check with our income tax calculator or read the old vs new regime guide.

How to claim Section 80E in your ITR

1. Get the interest certificate: ask your bank or financial institution for the FY 2025-26 statement showing the interest and principal split.
2. Opt for the old regime: answer the regime question in the return accordingly — 80E is not allowed in the new regime.
3. Open Schedule VI-A: in ITR-1 (or ITR-2 if you have capital gains or more than one house property), go to Chapter VI-A deductions and enter the interest paid in the Section 80E field. There is no upper cap, but enter only interest actually paid, not accrued.
4. Do not add the principal: the principal component of the EMI gets no deduction under 80E or 80C.
5. Track your window: note the assessment year you first paid interest; FY 2025-26 must fall within the 8-year span for the claim to be valid.
6. Keep proofs and e-verify: retain the sanction letter and certificates, file your return online and complete e-verification.

Documents to keep ready

• Interest certificate from the bank/financial institution showing the interest and principal split for FY 2025-26
• Loan sanction letter establishing the purpose (higher education) and the borrower
• Proof of relationship if the loan is for spouse, child or ward
• Record of the year you first paid interest, to track the 8-year window

Common mistakes to avoid

• Claiming the full EMI instead of only the interest portion shown in the bank's certificate.
• Claiming 80E for a loan taken from a relative or employer — only banks, notified financial institutions and approved charitable institutions qualify.
• A parent claiming the deduction when the loan is in the child's name and the child pays the EMIs — the borrower-payer claims it.
• Miscounting the 8-year window — it starts from the year interest is first paid, not the year the loan was sanctioned or the course ended.
• Claiming 80E while filing in the new regime.

Frequently asked questions

What is the maximum deduction under Section 80E?

There is no upper monetary limit. The entire interest paid on an eligible education loan during the financial year is deductible under Section 80E in the old tax regime. Only the interest component qualifies — principal repayment gets no deduction.

For how many years can I claim Section 80E?

For a maximum of 8 assessment years, starting from the year you first pay interest on the loan, or until the interest is fully repaid, whichever is earlier. Interest paid after the 8-year window gets no deduction.

Whose education loan qualifies for 80E?

A loan taken for the higher education of yourself, your spouse, your children, or a student for whom you are the legal guardian. The loan must be from a bank, a notified financial institution or an approved charitable institution — loans from friends, family or employers do not qualify.

Is Section 80E available in the new tax regime?

No. Section 80E can only be claimed if you opt for the old tax regime for FY 2025-26 (AY 2026-27).

How do I claim Section 80E in my ITR?

Opt for the old regime, then enter the interest actually paid during FY 2025-26 in the Section 80E field of Schedule VI-A (Chapter VI-A deductions) in ITR-1 or ITR-2. Use the interest figure from your lender's certificate and keep the sanction letter as proof of purpose.

Can I claim Section 80E along with Section 80C tuition fees?

Yes. Section 80E covers the interest on an eligible education loan, while tuition fees you pay directly for up to two children qualify separately under Section 80C within the Rs 1.5 lakh limit. They are different payments, so both can be claimed in the same year — but the same rupee cannot be claimed twice.

Get expert-assisted filing

All India ITR can verify your 80E eligibility, compute the deductible interest from your bank certificate and confirm your 8-year window before filing.

Explore salaried filing plans

Sources reviewed

• Income Tax Department – Salaried individuals for AY 2026-27 (Section 80E deduction)
• India Code – Income-tax Act, 1961 (Section 80E)

This guide is for general understanding. Whether your lender qualifies as a notified financial institution and when your 8-year window started are fact-specific — confirm with a tax expert before claiming.