Education and Career Forum

Hi friends, my brother has taken an education loan from South Indian Bank for her BTech course. She has completed course and now I am being his brother repaying the amount of Education loan which was taken by her. The is combined with my sister and mine names. But I want to claim tax rebate on this loan. Kindly tell me what I have to do?

You can claim a deduction of interest paid on loan taken for persuing higher education from taxable income under section 80E of IT Act.
In which deduction is allowed on the total interest amount of EMI paid during the financial year.

In order to claim deduction, the loan must be taken from bank/financial institution or any approved charitable institution.
Loan taken from friends or relatives do not qualify for deduction.

You will need to obtain a certificate from your bank which should have a breakup of the principal and interest portion of the education loan paid by you during the financial year.
The total interest paid will be allowed as deduction.