What to Do If You Forgot to Claim 80E in Original ITR?

PRITI SIRDESHMUKH
Jul 24
10 min read

Section 80E of the Income Tax Act provides taxpayers with the opportunity to claim deductions on interest paid on loans taken for higher education. This is especially beneficial for students who are repaying education loans. However, there can be instances where a taxpayer misses out on claiming this deduction while filing their original Income Tax Return (ITR). In such cases, a revised return can be filed to claim the Section 80E deduction and reduce taxable income. A revised return allows taxpayers to make amendments to their original return and include deductions that were either missed or inaccurately reported.

File a Revised Return for Section 80E Deduction

If you missed claiming the Section 80E deduction for the interest paid on your education loan when you initially filed your Income Tax Return (ITR), don't worry. Under Section 139(5) of the Income Tax Act, you can file a revised return to correct the omission. The revised return allows you to make changes or additions to your originally filed ITR. It is important to file the revised return within the time frame specified by the Income Tax Department to ensure that the deduction is successfully claimed.

Step-by-Step Guide to Filing a Revised Return for Section 80E Deduction

The process for filing a revised return is simple and can be done through the Income Tax e-filing portal. Here’s a detailed guide on how to go about it:

1. Log in to the Income Tax e-Filing Portal

To begin the process, you must log in to the official Income Tax e-filing portal. Use your Permanent Account Number (PAN) and password to access your account. Ensure that you are logged in with the same credentials used when filing your original return.

Go to the Income Tax e-filing portal: https://www.incometax.gov.in/iec/foportal
Enter your PAN and password to access your account.

2. Select the 'Revised Return' Option

Once logged in, go to the 'File Income Tax Return' section. You will have an option to select the type of return you want to file. Choose the 'Revised Return' option.

In the ‘Return Type’ dropdown menu, select ‘Revised Return’.
The option to file a revised return is available only for returns that have already been filed. You must have filed the original return for the current assessment year before selecting this option.

3. Fill in the Required Details

Next, you will need to fill in the relevant details related to the revised return. This step involves selecting the assessment year for which the return was originally filed and entering the acknowledgment number of your original return.

Assessment Year: Choose the year for which you are filing the revised return. For instance, if you are revising the return for FY 2024-25, select the corresponding assessment year 2025-26.
Acknowledgment Number: Enter the acknowledgment number that was generated when you filed your original return. This number can be found in the confirmation email or on the ITR-V form.

After filling in these details, ensure that you check the box indicating that this return is being filed as a "revised" return.

4. Claim the Section 80E Deduction

Once the basic details are filled in, proceed to the deductions section of the revised return. This is where you will claim the Section 80E deduction for the interest paid on your education loan.

Under the “Deductions under Chapter VI-A” section, find Section 80E – Interest on Education Loan.
Enter the amount of interest you paid on your education loan during the relevant financial year. Make sure to gather the relevant documents, such as the loan statement from the bank or financial institution, which shows the interest amount paid.

Note that Section 80E allows a deduction on the interest paid on loans taken for higher education, and there is no upper limit on the amount that can be claimed. The deduction can be claimed for up to 8 years or until the loan is fully repaid, whichever is earlier.

5. Review and Submit the Revised Return

After filling in all the details and claiming the Section 80E deduction, carefully review your revised return to ensure that all the information is accurate. Double-check the amount of interest paid on the education loan and ensure that all other details in the return are correct.

Once you are satisfied with the information, submit the revised return for processing. The system will verify the data, and if everything is in order, your revised return will be accepted.

E-Verify the Return: After submission, you will need to verify the revised return using one of the available methods—either through Aadhaar OTP, net banking, or by sending a signed ITR-V form to the Income Tax Department’s address. The e-verification process must be completed for the revised return to be valid.

6. Acknowledgment of Revised Return

Once the revised return is successfully submitted and verified, the Income Tax Department will process it. You will receive an acknowledgment for the revised return, and the updated information, including the Section 80E deduction, will be considered in the calculation of your tax liability.

The updated tax calculations will include the interest deduction under Section 80E, which could lead to a reduced tax liability or an increased refund amount.
If any further action or clarification is required, you may be notified by the Income Tax Department.

Important Considerations

Time Frame: The revised return must be filed before the end of the relevant assessment year (i.e., before March 31, 2026, for FY 2024-25). If you miss this deadline, you will not be able to claim the deduction for that year.
Accuracy: Ensure that all the details in the revised return are accurate, including the amount of interest paid on the education loan. Any discrepancies may result in further scrutiny or penalties.
ITR Acknowledgment: Keep a record of the revised ITR acknowledgment and any communication received from the Income Tax Department. This will help in tracking the status of your revised return and refund, if applicable.

Documentation Required for Claiming 80E Deduction

To claim the Section 80E deduction, you need to provide documentation that verifies the loan and the interest payments made towards it. Here’s the list of documents required:

Loan Agreement: A copy of the agreement between you and the lender (bank or financial institution) detailing the education loan amount, interest rate, and repayment schedule.
Interest Payment Certificate: The lender will provide you with a certificate showing the interest paid during the financial year. This certificate is important as it reflects the actual amount of interest paid, which is deductible under Section 80E.
Bank Statements or EMI Receipts: These documents confirm the actual payment of interest. Bank statements showing EMI deductions or receipts of EMI payments can serve as proof of the amounts paid.
Loan Disbursement Details: A copy of the loan disbursement statement or a letter from the lender confirming that the loan was taken for higher education.

Ensure that all documents are in proper order to avoid any issues during the revised return filing.

Time Limits and Key Conditions for Section 80E

Time Limit for Filing Revised Return: According to Section 139(5), you can file a revised return within the following time limits:
Before the end of the relevant assessment year: For example, for FY 2024-25, the return can be revised until March 31, 2026.
Before the completion of the assessment by the Income Tax Department: The revised return must be filed before the tax authorities finalize the assessment for the year.
Key Conditions for Section 80E:
Loan Purpose: The loan must be taken for higher education, which includes any course pursued after completing the 12th standard or equivalent.
Eligible Taxpayer: Only the taxpayer who is repaying the loan can claim the deduction. It’s not available for parents or guardians if the student is the beneficiary.
Interest Payment: The deduction applies only to the interest portion of the EMI paid, not the principal. The interest must be paid during the relevant financial year.

It’s crucial to ensure that all these conditions are met to avail of the deduction. In addition, keeping the documents ready as per the requirements can help you file your return smoothly.

What if the Time to Revise Has Expired?

If the time to revise your return has expired, meaning the deadline has passed, there’s no direct way to claim the Section 80E deduction for that financial year. However, there are a few alternatives:

Claiming Deduction in Subsequent Years: If you missed claiming the deduction in the original year, you can still claim the remaining interest paid under Section 80E in subsequent years, as long as the loan is active and you are repaying the interest.
Requesting a Rectification: In some cases, taxpayers may file a rectification request under Section 154 if there’s an error in the assessment of the original return. However, this is a narrow provision and may not be applicable in all cases.
Taxpayer’s Liability: If the time for revising has passed, you might miss out on reducing your taxable income for the current year. However, as you continue making payments toward the loan, you can still claim the deduction in future returns, as long as the conditions remain applicable.

It’s essential to be mindful of the deadlines for filing revised returns and make sure to file them on time to avoid missing out on beneficial deductions like Section 80E.

Conclusion

Claiming the Section 80E deduction for the interest paid on an education loan can provide significant tax relief. If you missed claiming the deduction in your original return, filing a revised return under Section 139(5) is a straightforward process, provided it is done within the prescribed time limits. Ensure that all the required documentation is in place, including the loan agreement and proof of interest payments, to support your claim. If the time for revising has expired, consider claiming the deduction in future returns for ongoing loan payments. By filing your revised return on time and maintaining accurate records, you can minimize your tax liabilities and maximize the benefits under Section 80E.

For anyone looking for assistance with their tax filing, it is highly recommended to download theTaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1: Can I file a revised return for Section 80E if I missed the deduction in my original filing?

Yes, you can file a revised return to claim the Section 80E deduction if you missed it in your original return. The key point is that you must file the revised return before the end of the assessment year (by March 31 of the assessment year). If you fail to file the revised return by this date, you will not be able to claim the deduction for that financial year, but you may claim it in the next year if applicable.

Q2: What documents do I need to claim the Section 80E deduction?

To claim the Section 80E deduction, you need to submit certain documents as proof of your education loan and the interest paid. These include:

Loan agreement: A copy of the agreement detailing the terms and conditions of the loan.
Interest payment certificate: A certificate from the lender specifying the interest paid during the financial year.
Bank statements: Statements that show the monthly EMI payments made for the loan.
Loan disbursement details: Documentation confirming the amount of the loan received, ensuring it was used for higher education.

Q3: What is the time limit for filing a revised return for Section 80E?

The time limit for filing a revised return under Section 80E is before the end of the assessment year, i.e., by March 31 of the year in which the return was originally due. Additionally, if the assessment has been completed by the Income Tax Department, a revised return can no longer be filed.

Q4: Can I claim Section 80E in subsequent years if I missed it in the current year?

Yes, you can claim the deduction for the education loan interest in future years as long as the loan is still active, and you are making interest payments. Section 80E allows a deduction for a maximum of eight years or until the loan is paid off, whichever comes first.

Q5: What happens if I miss the deadline to file a revised return?

If you miss the deadline to file a revised return, you will not be able to claim the Section 80E deduction for that year. However, you can still claim the deduction in subsequent years as long as you continue to make the necessary payments on the loan and meet all other requirements.

Q6: Can I claim the principal amount of the education loan under Section 80E?

No, Section 80E allows only the interest paid on the education loan to be deducted. You cannot claim the principal portion of the loan under this section. However, you can claim the entire interest amount, as long as it is paid during the financial year for a qualified education loan.

Q7: Is there any limit on the amount I can claim under Section 80E?

No, there is no upper limit on the amount you can claim under Section 80E for the interest portion of the education loan. As long as the loan is for higher education, and the interest is paid to a recognized financial institution, you can claim the full amount of interest paid during the financial year.

Q8: Can my parents claim Section 80E if the loan is in my name?

No, the deduction under Section 80E can only be claimed by the taxpayer who is repaying the loan. If the loan is in your name, you are eligible to claim the deduction, even if your parents took the loan to fund your education. Parents or guardians cannot claim the deduction if the loan is not in their name, even if they are making the payments on your behalf.

Q9: Can I revise my return multiple times for Section 80E?

Yes, you can revise your return multiple times for Section 80E as long as it is within the assessment year. Each revision allows you to correct any mistakes or add missed deductions. However, keep in mind that revisions should be done before the end of the assessment year to ensure that you do not miss the opportunity to claim deductions.

Q10: What should I do if the lender doesn’t provide an interest payment certificate?

If the lender does not provide an interest payment certificate, you can still claim the deduction by submitting alternative documents, such as bank statements showing the EMI payments or EMI receipts that highlight the interest paid. Additionally, you can request the lender to provide the certificate if possible. It is important to ensure you have adequate proof of the interest paid during the financial year.

Q11: Can I claim Section 80E if the loan is for my child’s higher education?

Yes, the deduction under Section 80E can be claimed if the loan is for your child’s higher education. The key factor is that you, as the taxpayer, are repaying the loan. Whether the loan is for your own education or your child’s, you can claim the deduction as long as you are making the payments on the loan.

Q12: Does the deduction under Section 80E apply to all types of education loans?

Yes, Section 80E applies to loans taken for higher education, which includes post-secondary education. The loan can be from any recognized financial institution, including banks, financial institutions, or approved charitable organizations. The loan can be for the taxpayer’s education or their dependent's education, as long as the loan is used to pay for tuition fees, accommodation, books, and other related educational expenses.