As mentioned above, the tax deduction under section 80E is available for the interest paid on education loans taken for higher studies. Now, these higher studies, as defined by the Act, are as follows: â All the courses taken after successfully completing class 12th.
A legible authority like the local authority, State government, or Central government should approve the board or the university where admission is taken.
The loan taken should be for the study of full-time courses only. The field could be medicine, engineering, nursing, applied science, management, etc. Part-time courses are not entitled to deduction under 80E. But it does cover the vocational courses taken after completing the 12th standard.
The course for which the loan is taken can be in a college or a university outside India. The loan has to be taken by an Indian resident and the financial or charitable institution from which the loan is taken also has to be Indian.