The deduction is available to an individual assessee against payment of interest on a loan taken from a financial institution or approved charitable institution for higher education.
- Higher Education means any study course pursued after senior secondary examination or its equivalent.
- Such a loan can be taken for the assessee (i.e. taxpayer), spouse, children or a child for whom the taxpayer is a legal guardian.
- There is no restriction on the amount under this deduction;
- However the deductions can continue for a period of 8 years starting from the first year of interest payment towards loan or till the loan amount is fully cleared, whichever comes earlier.