Income Tax Deduction for Children Tuition/School/Education Fee under Section 80C

Income Tax Deduction under 80c. Income Tax Deduction for Children Tuition/School/Education Fee under Section 80C. Deduction u/s 80C for tuition/school fees paid for the education of children/Income tax deduction for Children Tuition Fee/School Fee/ Education Fee under Section 80C.

Payment of tuition fees: Most schools, colleges, and universities in India have some fixed amount as tuition fees. The same can be deducted under Section 80C, up to R1 lakh in a year. The amount of deduction is restricted to two dependent children and should pertain only to the actual tuition fee paid. However, both the husband and wife have a separate limit of two children. So, each parent can claim the benefit for up to two children each.

Who is Eligible: Deduction for tuition fees u/s. 80c of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF.

Maximum Child:  Deduction under this section is available for tuition fees paid on two children’s education. If Assessee has more then two children then he can claim tuition fees paid of only two children. The deduction is available for any two children.

Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim a deduction for 2 children each.

Expenditure paid for self-education not allowable: – This is the only clause u/s 80 C where assessee can not claim tax benefit for expenditure incurred for self. In other words, if the assessee has paid tuition fees for his own studies, he will not be eligible for deduction.

Fees paid for spouse: Deduction is not available for tuition fees paid for studies of a spouse.

Maximum Limit: Deduction for tuition Fees is available up to Rs.100000.  Please Note that aggregate amount of deduction under section 80C, 80CCC and  80CCD shall not exceed Rs.1,00,000/-

Deduction available on payment basis: Deduction under this section is available on payment basis.  Fees may be related to any period. For example, feed paid for April 2009 if Paid in March 2009 will be eligible for deduction u/s. 80C in A.Y. 2009-10.

Deduction not available for the part-time course: The deduction is available for Full-Time courses only.   In our opinion, no deduction is available for part-time or distance learning courses.

Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C: The fees should be paid to university, college, school or other educational institution. No deduction available for fees paid for private tuition, coaching courses for admission in professional courses or any other type of courses is not covered as that fee is not paid for FULL-time education.

Location of University, college, school or other educational institution: University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes.  Allowability of pre-nursery, playschool, and nursery class fees: – Pre-nursery, playschool, and nursery class fees are also covered under section 80C (circular 9/2008 & 8/2007). You can get up to Rs 1 lakh as tax benefits for your kid’s tuition fees

Not allowable Expenses:
1. Development fees or donations not eligible.
2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed.
3. Late fees are not eligible for deduction.
4. Term Fees are not eligible for deduction.

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