This means that that the deduction under this section is not available in case the loan is taken for higher education by any member of Hindu Undivided Family. Deduction under section 80E can neither be claimed by a corporate or a firm.
Section 80E has been introduced to encourage people undertaking higher education. Till PY 2006-07, the deduction under this section was limited to loan taken by the assessee himself. However, it is difficult for an individual undertaking a full time course to avail the loan benefit. The loans were primarily availed by the person on whom the individual is dependent, who are generally parents. The section was, thus, modified and it has been provided that the loan can be availed by the individual for undertaking higher education of the following people:
- For self
- Relative, being a spouse
- Relative, being children of the assessee. The loan can also be availed for an adopted child.
For any student for whom the assessee is the legal guardian