Basic law of deductions from gross total income - Sections 80A, 80AB, 80C of Income Tax Act

Interest paid on Education loan : Deduction u/s 80E of Income Tax Act

Deductions permitted u/s 80E of Income Tax Act
Deduction for interest paid on loan taken for pursuing higher education. Deduction is available against interest paid for higher education of-
(i) The assessee himself
(ii) Also his spouse and children.

Deduction available on interest paid on such loans to:
(i) Banking Co.
(ii) Notified financial institution
(iii) Notified charitable institution.

Deduction period is up to 8 years from the initial year in which loan repayment is started.
Higher education means, any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or Local authority to do so.