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Education loan? Note the tax deduction

Education loan? Note the tax deduction

Interest on the loan is deductible for up to 8 years under section 129.

Why It Matters (Clinical Guidance)

  • Whoever repays the loan, parent or student, can claim the interest, for the first year of repayment and 7 more years.
  • The loan must be from a bank or an approved institution, not from relatives.
  • It applies under the old tax regime. Ask a CA which regime suits you.
Primary Citation: Income-tax Act 2025, s.129 (old 80E)
Last checked: October 2026 • Medical review panel forming