Can I claim the Section 80E education loan interest deduction under the new tax regime?
No, the Section 80E education loan interest deduction is available only under the old tax regime, not the new one. If you opt for the new tax regime, you lose access to this deduction entirely, so this is worth weighing when you choose which regime suits your finances.
If you are counting on Section 80E to reduce your taxable income while repaying an education loan, check your tax regime first. This deduction applies only under the old tax regime, not the new one.
Section 80E Availability By Regime
| Tax Regime | Section 80E Deduction Available? |
|---|---|
| Old tax regime | Yes |
| New tax regime | No |
Other Section 80E Basics To Remember
- The deduction period runs for 8 years
- It starts from the year your repayment begins, not the year the loan was taken
- Eligible lenders include banks and notified financial or charitable institutions
My Advice
Before you finalise your tax regime for the year, calculate whether your Section 80E deduction under the old regime saves you more than the lower rates the new regime offers. For many students actively repaying education loans, the old regime often works out better.
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