Answer

1. F

   Facts

   Interest on a loan for higher education of self, spouse, children or a student for whom you are guardian is fully deductible under 80E in the old regime, for up to eight years starting from the year repayment begins.

2. P

   Provisions and law

   • Sec 80E, Income-tax Act 1961 (now Sec 129)Deduction for interest on loans taken for higher education, for a limited number of years.
3. A

   Analysis

   There is no cap on the amount: if interest is ₹1,10,000 this year, all of it is deductible. Principal repayment does not qualify. The loan must be from a bank or approved institution. Keep the lender's interest certificate.

4. C

   Conclusion

   1. 1Get the interest certificate from the lender.
   2. 2Check the year repayment started.
   3. 3Claim the full interest under 80E.
   4. 4Choose the old regime.

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