11 Tax-Saving Strategies Indian Middle Class Overlooks (Practical Steps for 2025)

5. Education Loan Interest (Section 80E) — No Upper Limit

Interest on education loans for higher studies gets special treatment. Unlike many caps elsewhere, the deduction for education loan interest often carries no upper monetary limit, which is a big help for families paying for professional degrees or postgraduate courses. Both students and parents who pay interest can claim the deduction, but the loan must be for eligible higher education and documentation needs to be clear. How to use this: keep the lender’s interest certificate each year showing the amount of interest paid, track who actually paid it, and include the loan sanction letter if needed. This deduction applies for a limited period starting from when repayment begins, so check exact terms for your loan. For many middle-class families, this benefit alone can ease the burden of higher education costs when combined with scholarships and targeted support from trusts or employers.