{"id":26512,"date":"2023-08-28T12:03:18","date_gmt":"2023-08-28T12:03:18","guid":{"rendered":"https:\/\/tata-blog.osian.dev\/blog\/?p=26512"},"modified":"2024-05-16T15:22:22","modified_gmt":"2024-05-16T09:52:22","slug":"5-things-you-must-know-about-education-loan-tax-benefits-in-2022","status":"publish","type":"post","link":"https:\/\/tata-blog.osian.dev\/blog\/loan-for-education\/5-things-you-must-know-about-education-loan-tax-benefits-in-2022\/","title":{"rendered":"5 Things You Must Know About Education Loan Tax Benefits in 2022"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>When you&#8217;re planning on pursuing higher education in the country or even abroad, a <a href=\"https:\/\/tata-blog.osian.dev\/personal-loan.html\">personal loan<\/a>for education is the quickest way to finance your dreams. Besides funding your higher education, a student loan also comes with excellent tax benefits for the primary or the co-borrower.<\/p>\n\n\n\n<p>Whether you are a student or a parent, you are eligible to avail tax deductions on the total interest component of the loan repayment. Here\u2019s what you need to know about tax benefits on education loan 2022.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Eligibility<\/strong><\/h2>\n\n\n\n<p>As per the regulations, only an individual can claim a tax benefit, and no deductions are applicable on joint loans. Having said that, you can claim tax benefits under section 80E of the Income Tax Act, 1961, if you are-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A parent taking the loan for their children as the primary borrower or co-signee<\/li>\n\n\n\n<li>A student taking the loan can claim this deduction after getting a job from his taxable income<\/li>\n\n\n\n<li>A spouse paying the loan<\/li>\n\n\n\n<li>A legal guardian who is paying off the loan for the child can claim tax benefits<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Purpose of the loan<\/strong><\/h2>\n\n\n\n<p>Under section 80E, you can only avail of a tax deduction for education loanstaken for higher studies in India or abroad. Higher studies include any full-time course you wish to pursue after passing the senior secondary exam or its equivalent from a recognised board. It also includes any post-graduation degree you wish to apply for. Besides, you can avail of tax savings for vocational courses.<\/p>\n\n\n\n<p><strong>Additional Read:\u00a0<\/strong><a href=\"https:\/\/tata-blog.osian.dev\/blog\/loan-for-education\/nbfc-vs-bank-which-one-is-better-for-an-education-loan\/\">NBFC vs Bank \u2013 Which one is better for an Education Loan?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Deduction amount<\/strong><\/h2>\n\n\n\n<p>When it comes to a student loan, you must remember that the tax benefits are only available on the interest component of the loan and not the principal amount. In a given financial year, you can claim the entire interest payable for a tax deduction, and there is no upper limit to your savings. This makes up for the lack of tax benefits on the principal repayment, making it an affordable option.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax deduction period<\/strong><\/h2>\n\n\n\n<p>Education loan tax benefits<strong> <\/strong>are only available up to a certain period. Simply put, the year in which you start paying the loan through EMIs, is considered the first year of repayment. Now, including this first year, you can only claim a tax deduction on interest for a maximum of 8 years.<\/p>\n\n\n\n<p>For instance, if you repay your loan within 7 years, the tax deduction will be available for only 7 years and not 8 years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Source of finance<\/strong><\/h2>\n\n\n\n<p>The tax deductions under section 80E are not available on all education loans. Which is to say, the tax benefits are only applicable if you have taken a loan from a bank\/financial institution or any approved charitable institution. You cannot avail of tax savings on loans taken from friends or family for higher education.<\/p>\n\n\n\n<p style=\"color:#FF0000\"><strong>Additional Read:&nbsp;<\/strong><a href=\"https:\/\/tata-blog.osian.dev\/blog\/education-loan\/secured-vs-unsecured-education-loans-a-detailed-guide\/\">Secured Vs Unsecured Education Loans: A Detailed Guide<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The bottom line<\/strong><\/h2>\n\n\n\n<p>Searching for a quick loan to finance your higher studies? If yes, then get in touch with one of India\u2019s leading lending institutions \u2013 Tata Capital! With competitive <a href=\"https:\/\/tata-blog.osian.dev\/personal-loan\/interest-rates-and-charges.html\">personal loan interest rates<\/a><strong>, <\/strong>structured EMI plans, minimal paperwork, and swift disbursal, get admission into your dream university without worrying about the finances!<\/p>\n\n\n\n<div class=\"wp-block-group alignwide\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns alignwide is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tata-blog.osian.dev\/online\/loans\/personal-loans\/apply-now-personal-loan\">Apply Now<\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>When you&#8217;re planning on pursuing higher education in the country or even abroad, a personal loan for education is the quickest way to finance your dreams.  <\/p>\n<p><a href=\"https:\/\/tata-blog.osian.dev\/blog\/education-loan\/5-things-you-must-know-about-education-loan-tax-benefits-in-2022\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":26513,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[28],"tags":[],"class_list":["post-26512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loan-for-education"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.13 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>5 Things You Must Know About Education Loan Tax Benefits in 2022 - Tata Capital Blog<\/title>\n<meta name=\"description\" content=\"Education loan tax benefits is a long-awaited reform. Here are the top 5 things you need to know about education loan tax benefits in 2022.\" \/>\n<meta name=\"robots\" content=\"noindex, nofollow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"5 Things You Must Know About Education Loan Tax Benefits in 2022 - Tata Capital Blog\" \/>\n<meta property=\"og:description\" content=\"Education loan tax benefits is a long-awaited reform. 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