Education Loan from Friends? No Tax Benefit, Says Expert

• Section 80E allows tax deduction on education loan interest for self, spouse, or children's higher education.
• Deduction is available for 8 consecutive years, starting from the year interest payment begins, only on actual interest paid.
• Crucially, the loan must be taken from a financial institution or an approved charitable institution to qualify for Section 80E benefits.
• Unlike home loans, education loans from friends or relatives do not qualify for tax deductions under Section 80E.
• These tax benefits are only applicable under the old income tax regime, not the new one.

Why It Matters: Education loans from friends/relatives don't qualify for Section 80E tax benefits.