Section 80E of the Indian Income Tax Act offers one of the most generous tax deductions available in the tax code.

Key Features of Section 80E:

• No Upper Limit: Unlike Section 80C (₹1.5 Lakh cap) or Section 24(b) (₹2 Lakh cap), Section 80E has no upper monetary limit. The entire interest paid in a financial year is 100% deductible from taxable income!
• 8-Year Claim Period: You can claim this deduction starting from the year repayment commences for up to 8 consecutive financial years.
• Who Can Claim: The individual who pays the interest (either the student or parent/spouse co-borrower) can claim the deduction under the Old Tax Regime.