Question

What is the maximum amount of deduction available under section 80E of Income Tax Act 1961 in respect of deduction for interest paid on loan taken for higher education, for the assessment year 2018-19?
1. Rs. 1,000
2. Rs. 10,000
3. Rs. 50,000
4. No limit, actual amount paid can be claimed as deduction

Answer 1

Correct Answer - Option 4 : No limit, actual amount paid can be claimed as deduction

The correct answer is No limit, the actual amount paid can be claimed as a deduction.

•  Deduction under section 80E: Deduction in respect of repayment of loan taken for higher education.
• The interest paid on that education loan is allowed as a deduction from the total income under Section 80E.
• There is no limit on the maximum amount that is allowed as a deduction.