Kotak Life

Buy a Life Insurance Plan in a few clicks


Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Section 80E: Tax Exemption on Interest on Education Loan

Section 80E: Tax Exemption on Interest on Education Loan
  • 28th Nov 2019 |
  • 4,443

The Indian education industry is expected to grow to USD 144 billion by 2020. Demographically, the country has one of the biggest youth populations combined with a large number of educational institutions.As the economy continues to grow and incomes increase, spending on education is also witnessing a boost. Education expenses account for the second-highest category in a middle-class Indian household.

Several people opt for education loans to fund studies and Section 80E of the Income Tax Act, 1961 helps you reduce your taxes when you opt for such a loan.

Section 80E of the Income Tax Act

According to this section, the interest paid during the financial year on the education loan is eligible for tax benefits. The income tax deduction under Section 80E may be claimed for education loan taken for self, spouse, children, and any students for whom you are a legal guardian.

The tax benefits under this section are available only on loans availed from a financial institution or a charitable trust. If you avail of a loan from your relative or friend and pay interest on the same, the 80E deduction benefits are not available.

Charitable institutions for this purpose include universities or educational institutes established for education purposes and are non-profit organizations. These may also include institutions or trusts, which are established for religious or charitable purposes, and are prescribed by the commissioner of Income Tax (Exemptions) or Director-General.

Deduction under Section 80E

Having understood what is Section 80E, you need to know that the benefits under are available only on the interest component and not on the principal amount on the Equated
Monthly Installment (EMI). You may claim such deductions from the first repayment date and continue using the benefits for seven more years. This means the 80E deduction limits are available for a total period of eight years.

The meaning of higher education as per Section 80E

The section defines higher education as studies pursuant to the completion of the Senior Secondary Examination or its equivalent. Moreover, the board or the university must be state or government approved. The course should be a full-time or a vocational program taken up after the completion of the Senior Secondary Examination. Interest paid on an education loan availed for pursuing an international course after completing Senior Secondary Examination is also eligible for benefits under this section.

Eligibility for tax deduction under Section 80E

  • To avail of tax benefits, you need to meet certain eligibility criteria as discussed below:
  • Only individuals may claim deductions; Hindu Undivided Families (HUFs) and companies cannot take benefit of this section
  • Only the interest paid on the loan is eligible
  • The deduction is available only for loans availed from recognized charitable or financial institutions to pursue higher education for a period of
    eight years from the first repayment year
  • The loan must be in your name; however, the course may be pursued either by you, your spouse, or children

The quantum of deduction under Section 80E

The section 80E income tax benefit is available only on the interest paid on the education loan. However, there is no upper limit on the amount that may be claimed during the eligible period. You need to procure a certificate from your lender to claim the deduction. It must clearly show the principal and the interest components within the EMI. The interest paid on the education loan must be through your income during the financial year.

The benefit is available for a period of eight assessment years under the assumption that the course would be complete and the loan would be repaid within this time. Often,education loans may provide moratorium of six months to one year post completion of the course. Therefore, repayment may commence only after the end of the moratorium period. In such cases, the benefits will be available from the assessment year when the first repayment is done and seven additional years.

Read Here for More Related Articles:

Kotak e-Term Plan


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Advantages & Disadvantages of Term Insurance in India

Do You Need Term Insurance Cover After Retirement?

5 Term Insurance Benefits for Single Women

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Term Life Insurance Plan for Smokers vs Non-Smokers

6 Types of Death not covered in Term Insurance Plan

Advantages of Buying Term Insurance in Your 50s

Know How to Invest at Every Age for Larger Returns

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Is There Any Tax Benefit on Term Insurance?

5 Reasons to Buy Term Insurance When You are in Your 30s

4 Methods to Calculate How Much Term Insurance You Need

Why Should New Parents Buy Term Life Insurance?

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Make Your Online Term Plan Your Family's Monthly Pay Cheque

Insuring Protection Against Death With Death Insurance Rider

Individual Life Insurance vs. Group Term Life Insurance

Is ₹1 Crore Term Insurance Good Enough Cover?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

6 Reasons That Make Term Insurance a Must Buy

Term Insurance Basics You Should Know

Why should single women purchase term life insurance?

How Does A Term Life Insurance Work in India?

Tax Benefits of Term Insurance in India

Increasing Term Insurance and Riders

How Much Term Life Insurance Cover Do I Need in India?

Calculating Term Insurance Premium

9 Ways to Help Family Members in Financial Trouble

Top 3 Reasons Why You Should Buy A Term Plan Now

Why Married People Should Buy Term Insurance Under MWP Act?

What are incremental term insurance plans?

What Is the Correct Age to Buy Term Insurance?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Why Term Insurance Is Important in times of COVID-19?

What Happens if you Hide Facts in your Term Insurance?

Is term Insurance Needed for People With No Dependents?

What All Documents Required For Term Insurance In India?

Why Should You Not Take A Term Plan Without Medical Test in India?

Why Should You Buy Term Insurance in 2022?

Can I Make Changes to My Term Insurance Policy Post Purchase?

What are the Documents Required for Term Insurance Plan?

Everything About Claim Settlement Ratio for Term Insurance

Different Types of Protection Plans

How Much Cover Should I Take In A Term Plan?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

How Not To Get Your Term Insurance Claim Rejected

How To Change The Nominee in Term Insurance?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

Tips to Choose the Right Term Period for Term Insurance Plan

Is Term Life Insurance Plan an Investment or Expense?

Should You Buy a Term Plan After 40?

All About Term Insurance Inbuilt Coverage

Insuring Against Accidents with an Accidental Death Insurance Rider

Importance of Term Insurance at Every Stage of Your Life

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Term Insurance Plans and Policies for Smokers

Understanding Term Insurance Riders

Protection for your family

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Do Beneficiaries Pay Taxes on Term Insurance?

What Types of Deaths Are Covered in a Term Insurance Plan?

How to Compare Term Insurance Online

8 Benefits of Term Insurance You Should Know

9 Most Frequently Asked Questions on Term Insurance

Can Senior Citizens Avail Term Insurance?

How To Calculate The Amount Of Term Life Insurance You Need?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Gift Your Father A Term Insurance Plan This Father's Day

Can I Get Term Insurance on Behalf of My Spouse?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Make Your Online Term Plan Your Familys Monthly Payout

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Term Insurance With Riders In India

Can You Increase Your Term Insurance Cover?

What Should Be The Duration Of Your Term Plan in India?

How to Surrender Term Life Insurance When you have No Liabilities

Term Insurance – Why You Must Include In Your Financial Planning?

All you need to Know about Term Insurance Plans for Housewives

Term Insurance with Critical Illness

How Much Term Insurance Do I Need

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Should You Have Multiple Term Life Insurance Policies?

Why Buy Term Insurance Even at Rising Rates?

Which Death Type Does Your Term Plan Not Cover?

While Buying Term Insurance Compare Features, Not Just Premiums

Term Plan with Spouse Cover

Term Insurance: Smokers vs Non-Smokers

Why Should You Add a Rider to a Term Insurance Plan?

Can I Extend the Tenure of My Term Insurance Plan?

Term Plans are Definitely Cheaper than You Think!

Insurance Policy for Housewife In India

4 Things To Expect From Your Term Insurance Plan in India

Why Term Plan Should Be The First Step To Securing Your Future?

Comparing Term Plans – What Should You Look Out For

Online vs Offline Term Insurance: Which Is The Better Option To Buy

How To Choose the Right Sum Assured Under a Term Plan?

What Should You opt for - Limited or Premium Pay?

Why Buy Term Insurance Plan With a High Cover?

Difference between Term Insurance and Life Insurance

Can I Buy Term Insurance for a COVID-19 Patient?

Is It Good To Buy A Term Insurance Plan In 2022?

Choosing Riders for Insurance Plans

Why does every working woman need life insurance?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

How To Choose the Right Term Insurance Plan?

Eligibility Criteria for Buying Term Insurance in India

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Steps on How to Buy Term Insurance Online

Cost of Term Insurance Likely to Increase Soon

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance Age Limit – Term Plan for All Age Groups

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Does Term Insurance Cover Accidental Death?

Ensure Protection Against Death, Disease & Disability With Life Insurance

What Are Insurance Riders and How to Choose Them in a Term Plan?

Different Types of Premium in Term Insurance

10-Year Term Life Insurance Policy - Explained in Detail

How Does Term Life Insurance Work? Learn the Benefits

Insuring yourself against Ill Health with a Critical Illness Rider

Endowment Plans vs Term Plans: Understanding the difference

Why Term Insurance Is Better Than ULIP?

Do I Need to Give a Medical Test for Term Insurance in India?

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Planning For Son or Daughter's Wedding

5 Benefits of Early Retirement Planning

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Reasons You Need Term Insurance Plan as a Self-Employed Person

8 Factors to consider before choosing a Critical Illness Insurance

Is Life Insurance Investment Worthy Enough

Busting Myths and Facts About Term Insurance Policies

Should Youngsters, Working Couples Buy Term Insurance Plans?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

4 Reasons Why You Need Critical Illness Cover

Buying A Term Insurance Plan? Take These Factors into Account

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

What is Term Insurance - A Complete Guide

Best Investment Plans for Children - Secure Your Child's Future

What is a short term insurance policy?

Can Term Insurance Plans Be Purchased As A Gift?

Planning For Children's Future

Why 1 Cr Term Plan Is Necessary For Family?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Insuring Against Disability With Disability Insurance Rider

Term Insurance Calculator - Everythng You Need To Know

How to Identify Term Insurance According to Your Needs?

What is Critical Illness Policy

Is a Term Insurance Policy Portable?

Why is it important to buy term insurance plan?

8 Things To Do After Buying Term Insurance

What is Insurance Premium - A Detailed Guide

What Is a Renewable Term Insurance Policy?

Is Group Term Life Insurance Provided By Employer Sufficient?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Why Premium Amount for Term Insurance is So Low?

5 Things To Consider While Buying Term Insurance Plan