Question

Section 80E is related to deduction for :

• A. Rent
• B. Donation
• C. Education
• D. Medical

Hint:

Section 80E gives a deduction on the interest paid on a loan taken for higher studies.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Chapter VI-A of the Income Tax Act lets a taxpayer reduce taxable income by claiming deductions. Each section covers a different kind of payment.

Step 2: Recall Section 80E.
Section 80E gives a deduction for the interest paid on a loan taken for higher education.
The loan must be taken for the taxpayer, spouse or children. The whole interest paid is allowed as a deduction, for up to 8 years or until the interest is fully paid, whichever is earlier.

Step 3: Why the other options are wrong.
Rent: house rent paid is covered by Section 80GG, or by HRA for salaried persons.
Donation: donations to charity are covered by Section 80G.
Medical: health insurance premium and medical expenses fall under Section 80D.

Final Answer:
Section 80E is related to deduction for Education loan interest. This is option (C).