top of page

What are the tax implications of student loans?

Curious about student loan

What are the tax implications of student loans?

There are no tax implications of taking out a student loan or repaying it. However, the interest paid on a student loan can be claimed as a deduction under Section 80E of the Income Tax Act. This deduction can be claimed for a maximum of 8 years, starting from the year in which the borrower starts repaying the loan or until the loan is fully repaid, whichever is earlier. The deduction is available only for loans taken from financial institutions, banks, or approved charitable institutions for higher education purposes. It is important to note that this deduction is only available to the individual who has taken the loan and not to any other family member or dependents.

bottom of page