How does Section 80-E of Income Tax Act work ?

[aryansachdeva]

I have taken an education loan in my name i wanted to know how can i get tax benefit of the interest i paid on my education loan like I know i have to generate the interest certificate then what am i supposed to do with it ? I will be working in corporate soon so will TDS be deducted lesser from my salary or how will this work out. If someone could explain me this it would be of great help.

 

[ShavirB]

Have done this exercise for more than 5 years, happy to share my personal experience.

When you join your company, you will be required to declare all your tax saving investment to your HR/ Finance Team. Basis your declaration, income tax willl be deducted from your salary. You can mention the amount of interest paid in education loan under section 80E in that declaration.

At the end of Financial Year, you can download Interest Certificate from Bank's App/ Website and submit to your Finance Team. It's that simple.