How to save income tax with Education Loan

Описание: Income Tax Calculator - https://lenvica.com/income-tax-calcul...

How to save income tax with Education Loan

Section 80E of the Income Tax allows deduction from taxable income in respect of interest on loan taken for higher education. This video describes how you can save tax with your education loan.

As per section 80E, the interest on education loan can be claimed as a deduction with no upper limit.

The education loan should be taken
for self, spouse, or children
for the purpose of pursuing higher education
from a bank or an approved charitable institution

Tax deduction can be claimed for
8 years or
until interest on loan is fully repaid
whichever is earlier

Now, let's use the income tax calculator to see how much tax you can save with education loan.

Step 1: Open the income tax calculator

Step 2: Key in your salary details

Step 3: Now, calculate income tax.
As per the calculation, you have a total tax liability of INR 100000

Step 4: Declare your Education loan
Key in the interest amount.

Step 5: Calculate income tax again
As you see, the total tax liability has come down by INR 30000

You can claim deduction only on the interest portion of the education loan, and the pricipal part of the education loan is not considered. You need to get a certificate from your bank on the interest you paid for the financial year.

This video describes how you can save tax with your education loan.

00:00 Save income tax with Education Loan
00:26 The education loan should be taken for
00:39 Tax deduction can be claimed for
00:57 Income tax calculator
01:12 Salary details
01:19 Calculate income tax
01:38 Declare Education loan
01:59 Calculate Tax Liability

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