Tax Benefits on Abroad Education Loans

Students availing education loans for studying abroad can enjoy significant tax benefits under Section 80E of the Income Tax Act in India. The interest paid on such loans is eligible for a tax deduction, reducing the overall financial burden. This benefit applies only to the interest component, not the principal amount, and can be claimed for a maximum of 8 consecutive years starting from the year repayment begins. It covers loans taken from recognized financial institutions or charitable organizations, making it a valuable relief for students pursuing higher education overseas.