Cost of children's education has gone up substantially in recent years. However, there are certain deductions eligible for education expenses under the Income Tax Act, which to some extent can lessen the burden of increasing education expenses.
Lakshman Prasad has two children staying in hostel; one is studying in school and the other one in college. He has availed an education loan for Rs 8 lakh to meet the expenses of his son studying in college on which he pays an interest of Rs 1 lakh during the year. Here are the various provisions, under the Income Tax Act, that provide tax relief to Lakshman.