SECTION 80E-Deduction in respect of interest on loan taken for higher education
(1) The Assessee is an individual and;
(2) The assessee has paid any amount in the previous year, out of his income chargeable to tax, by way of interest on loan (and not repayment of loan), taken by him from any financial institution (including bank) or any approved charitable institution for the purpose of pursuing his higher education or also for the purpose of higher education of his relative.
Amount of Deduction
In computing the total income of such an assessee, the deduction will be allowed @ 100% of the interest paid on loan (and not repayment of loan) taken, referred to in condition (2) above without any monetary ceiling limit. Such deduction is allowable from gross total income of the initial assessment year and for 7 successive years or until the interest on such loan is paid by the assessee in full whichever is earlier.