How can I claim tax deduction for interest paid on education loan?

financialexpress.com:

Question: I am an individual taxpayer and intending to avail an education loan on behalf of my daughter who would be pursuing a course in an International Educational Institute abroad. Kindly guide on whether the interest paid on such educational loan taken for the purpose of daughter’s education can be claimed as tax deduction in my tax return. Further, whether such tax deduction would be restricted to education loan availed for Indian courses or extended to foreign courses as well?

Answer by Dr. Suresh Surana, Founder, RSM India: Interest on a loan taken from specified lenders (such as financial institutions like banks, etc. or any approved charitable institution) for pursuing higher education by the individual for himself or any of his relatives can be claimed as a tax deduction u/s 80E of the Income Tax Act, 1961 (hereinafter referred to as ‘the IT Act’). Such tax deduction can be claimed in respect of the initial assessment year and 7 assessment years immediately succeeding the initial assessment year or until the interest is paid in full, whichever is earlier.

For instance, in case the taxpayer has started paying interest from FY 2020-21 (i.e. AY 2021-22), the tax deduction can be claimed from FY 2020-21 (AY 2021-22) to FY 2028-29 (AY 2029-30) or in case the loan is fully repaid before FY 2028-29 (AY 2029-30), then deduction would be claimed until such period of expiry of loan. Herein, the taxpayer cannot claim the principal component of the loan EMI but only the interest component as tax deduction.

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The individual can claim such tax deduction u/s 80E wherein such education loan is availed by him for his education or for the education of any of his