Education-related payments may provide income-tax deductions in two different situations:

• Tuition fees paid for the full-time education of children may qualify for deduction under Section 80C.
• Interest paid on an eligible education loan may qualify for deduction under Section 80E.

These deductions are subject to different eligibility conditions. Tuition-fee deduction forms part of the overall Section 80C limit of ₹1,50,000, while eligible education-loan interest does not have a separate fixed monetary ceiling.

Tuition Fees versus Education-Loan Interest

Which income-tax law applies?

Income earned during FY 2025-26 and reported in the return for AY 2026-27 continues to be governed by the Income-tax Act, 1961.

The Income-tax Act, 2025 applies from 1 April 2026 for Tax Year 2026-27 onwards. The corresponding education-related deductions have largely been reorganised and renumbered under the new legislation.

1. Deduction for Tuition Fees under Section 80C

An individual may claim a deduction for qualifying tuition fees paid for the full-time education of their children.

Conditions for claiming the deduction

1. The deduction is available only to an individual

The tuition-fee component of Section 80C is available to an individual taxpayer. It is not available to a Hindu Undivided Family.

2. Fees may be claimed for a maximum of two children

A taxpayer may claim tuition fees paid for any two children. The law does not prescribe a separate age limit, but the payment must relate to full-time education.

A husband and wife are treated as separate taxpayers. Each parent may claim the qualifying amount actually paid by that parent, subject to the applicable conditions and individual Section 80C limit. The same payment cannot be claimed twice.

3. The educational institution must be situated in India

The fees must be paid to a university, college, school or other educational institution situated in India.

Tuition fees paid to an educational institution situated outside India do not qualify under this provision.

4. The course must involve full-time education

The deduction applies to tuition fees paid for full-time education. Fees paid for coaching classes, private tuition, part-time courses or distance-learning programmes do not ordinarily qualify under this specific provision.

5. Only the tuition-fee component qualifies

Section 80C specifically excludes development fees, donations, capitation fees and payments of a similar nature.

The following charges should generally not be included:

• Development fees
• Donation or capitation fees
• Transport charges
• Hostel charges
• Books and uniform expenses
• Examination or activity charges separately collected by the institution

6. Fees paid for the taxpayer or spouse do not qualify

The tuition-fee provision applies only to the taxpayer’s children. Fees paid for the taxpayer’s own education, the spouse’s education, siblings or other relatives cannot be claimed under this part of Section 80C.

Maximum deduction for tuition fees

Tuition fees do not have a separate ₹1,50,000 limit. They form part of the combined limit applicable to eligible payments under Sections 80C, 80CCC and 80CCD(1).

The aggregate deduction for tuition fees and other eligible payments cannot exceed ₹1,50,000 for AY 2026-27.

Documents to retain for tuition fees

• School, college or university fee receipts
• Bank statement or payment confirmation
• Fee breakup separating tuition fees from other charges
• Name of the child
• Name and address of the educational institution
• Receipt or document identification number

2. Deduction for Education-Loan Interest under Section 80E

Section 80E allows an individual to claim a deduction for interest actually paid on an eligible loan taken for higher education.

Who can claim the deduction?

The deduction may be claimed by an individual who:

• Took the qualifying education loan; and
• Paid the interest from income chargeable to tax.

The education loan may relate to the higher education of:

• The taxpayer
• The taxpayer’s spouse
• The taxpayer’s child
• A student for whom the taxpayer is the legal guardian

What qualifies as higher education?

Higher education means a course pursued after passing the Senior Secondary Examination or its equivalent from a recognised school, board, university.

Unlike the tuition-fee provision under Section 80C, Section 80E does not restrict the educational institution to India. However, all conditions relating to the borrower, lender, course and payment must be satisfied.

Eligible lenders

The education loan must be taken from:

• A banking company covered by the Banking Regulation Act;
• Another financial institution notified by the Central Government; or
• An approved charitable institution covered by the applicable provisions.

Interest paid on money borrowed from relatives, friends or informal lenders does not qualify merely because the amount was used for education.

Only interest paid is deductible

The deduction is available only for the eligible interest actually paid during the financial year.

The following amounts cannot be claimed under Section 80E:

• Education-loan principal repayment
• The complete equated monthly instalment
• Processing fees
• Other bank charges
• Interest accrued but not actually paid during the year

Maximum amount of deduction

Section 80E does not prescribe a fixed monetary ceiling. The deduction is based on the eligible interest actually paid during the financial year.

The amount should be taken from the annual interest certificate or loan account statement issued by the lender.

How long can Section 80E be claimed?

The deduction is available for:

• The assessment year relating to the financial year in which the taxpayer first starts paying interest; and
• The following seven assessment years.

The deduction ends earlier if the interest is fully paid before the completion of the eight-year period.

Documents to retain for an education loan

• Education-loan sanction letter
• Loan agreement
• Annual interest certificate
• Loan account statement
• Proof of interest payment
• Details of the student and course
• Lender’s name and loan account number

How to Add Tuition Fees and Education-Loan Interest in myITreturn.com

The exact wording of a menu or button may vary slightly according to the selected ITR form and the current version of myITreturn.com.

Step 1: Log in and start the return

Log in to myITreturn.com and select the member for whom the Income-tax Return is being filed.

Start or continue the return for the applicable Assessment Year.

Step 2: Import available tax information

Use the available import option to bring in information from the Income Tax Department.

Review the imported income, TDS, tax-payment and personal details before continuing.

Step 3: Select the applicable tax regime

Compare the tax liability under the Old and New Tax Regimes.

To claim tuition fees under Section 80C or education-loan interest under Section 80E, select the Old Tax Regime.

Step 4: Open the Deductions section

Go to the Deductions menu and open the applicable Chapter VI-A deductions.

The deductions available on the screen will depend on the selected tax regime and ITR form.

Step 5: Add tuition fees under Section 80C

Open Section 80C and add the eligible tuition-fee payment.

Enter the information requested on the screen, which may include:

• Eligible tuition-fee amount
• Receipt or document identification number
• Other supporting details displayed in the filing flow

Enter only the qualifying tuition-fee component. Do not include development fees, donations, transport charges, hostel charges or other separately collected amounts.

myITreturn will consider tuition fees along with the taxpayer’s other eligible Section 80C payments and restrict the combined deduction to the applicable limit of ₹1,50,000.

Step 6: Add education-loan interest under Section 80E

Open Section 80E – Interest on Loan Taken for Higher Education.

Enter the details available in the loan statement or interest certificate, such as:

• Name of the bank or qualifying institution
• Loan account number
• Date of sanction
• Total amount of the loan
• Outstanding loan balance as on 31 March 2026
• Eligible interest paid during FY 2025-26

Enter only the eligible interest amount. Do not enter the complete EMI or the principal repayment as a deduction.

Step 7: Save and review the computation

Save the entered deduction details and open the tax computation or tax-summary section.

Confirm that:

• Tuition fees appear under Section 80C
• The total Section 80C deduction does not exceed ₹1,50,000
• Education-loan interest appears separately under Section 80E
• The deductions are reflected in the Old Tax Regime computation

Step 8: Complete and submit the return

Review all income, deduction, TDS and tax-payment details before submitting the return.

After submission, complete the applicable e-verification process. An Income-tax Return that is not verified within the prescribed period may be treated as invalid.

Common Mistakes to Avoid

1. Claiming the deductions under the New Tax Regime: Sections 80C and 80E are not available under that regime.
2. Treating tuition fees as a separate ₹1,50,000 deduction: Tuition fees share the overall Section 80C limit with other eligible investments and payments.
3. Including non-tuition charges: Development fees, donations and similar payments are not eligible.
4. Claiming fees for more than two children: The tuition-fee deduction is restricted to any two children per individual taxpayer.
5. Claiming fees paid for self or spouse: The tuition-fee provision applies only to children.
6. Claiming the complete education-loan EMI: Only eligible interest actually paid can be claimed under Section 80E.
7. Claiming interest on an informal loan: The loan must be taken from a qualifying financial or approved charitable institution.
8. Calculating the eight-year period from the sanction date: The period begins from the year in which interest payment starts.
9. Claiming the same payment twice: The same fee receipt or interest payment should not be claimed by more than one taxpayer.
10. Not retaining supporting documents: Fee receipts, loan statements and interest certificates should be preserved.

Frequently Asked Questions

Can tuition fees paid for coaching classes be claimed?

Generally, no. The deduction applies to tuition fees paid to a university, college, school or other educational institution situated in India for the child’s full-time education.

Can a parent claim tuition fees for three children?

An individual taxpayer can claim tuition fees for a maximum of two children. Where both parents make separate payments, each parent may claim the qualifying amount actually paid, subject to the applicable conditions and without making a duplicate claim.

Is education-loan principal eligible under Section 80C?

No. Repayment of education-loan principal is not an eligible Section 80C payment. Section 80E separately allows a deduction only for qualifying interest paid.

Can interest paid during the loan moratorium period be claimed?

Interest may be claimed in the financial year in which it is actually paid, provided all statutory conditions are satisfied. Interest that has merely accrued but has not been paid should not be claimed.

Can tuition fees and education-loan interest both be claimed?

Yes. Eligible tuition fees may be claimed under Section 80C and eligible education-loan interest may be claimed separately under Section 80E in the same return.

Conclusion

Tuition-fee and education-loan deductions provide tax relief for two different types of education expenses.

Tuition fees paid for the full-time education of up to two children may qualify under Section 80C, but the deduction forms part of the combined ₹1,50,000 limit. Interest paid on a qualifying higher-education loan may be claimed separately under Section 80E for a maximum period of eight assessment years, without a fixed statutory monetary ceiling.

Both deductions are available only under the Old Tax Regime. Taxpayers should compare their final liability under both regimes and retain proper receipts, loan statements and interest certificates before claiming the deductions.

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