CA Sandeep Kanoi

CA Sandeep KanoiDeduction u/s. 80C for tuition / school fees paid for education of children

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 have more then two children then he can claim tuition fees paid of only two children’s. 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 deduction for 2 children each.

Expenditure  paid for self education not allowable: – This is the only clause u/s 80C where assessee can not claim tax benefit for expenditure incurred for self. In other words if 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 spouse.

Maximum Limit: Deduction for tuition Fees is available up to Rs. 100000 (Rs. 1.50 Lakh from A.Y. 2015-16).  Please Note that aggregate amount of deduction  under section 80C , 80CCC and  80CCD shall not  exceed Rs. 1,00,000/- (Rs. 1.50 Lakh from A.Y. 2015-16).

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 2016 if Paid in March 2016 will be eligible for deduction u/s. 80C in A.Y. 2016-17.

Deduction not available for 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’s , coaching courses for admission in professional courses or any other type of courses are 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, play school and nursery class fees: – Pre-nursery, play school and nursery class fees is also covered under section 80C (circular No. 20/2015 Dated 02/12/2015)

Not allowable Expenses:-

1. Development fees or donation 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 is not eligible for deduction.

4. Term Fees is not eligible for deduction.

5. No deduction for part time or distance learning courses.

6. no rebate for private tuition.

7. Building fund or any donation etc not allowed.

Note: Above list is not exhaustive.

Summary of Above Provisions

1) Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1 lakh for education expenses incurred for one’s children.

2) Each parent can claim the deduction for the tuition fees paid for up to two children each, thereby covering a maximum of four children in a family.

3) This deduction is available to the parent who has made the payment, to the extent of the tuition fee actually paid or Rs 1 lakh (Rs. 1.50 Lakh from A.Y. 2015-16), whichever is lower.

4) The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.

5) This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.

6) Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.

FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C

Q. Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?

Answer: Yes he can. As clause (c)  of sub-section 4 of Section 80C only speaks of children’s of Individual.  Section 80C is silent on legality of child and it does not say that child should be legal child.

Q. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

Answer: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claiming deduction under clause (xvii) of section 80C.

Q. I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?

Answer: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.

Q. Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?

Answer: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.

Q. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,60,000/- can we both claim deduction?

Answer: Yes both of you can claim deduction u/s 80C up to a maximum of Rs.  1,50,000 each.  You can claim deduction up to 150000/- and your wife can claim deduction of Rs. 70,000/-.

Q. I am currently working and studying. If  I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?

Answer: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.

Q. I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?

Answer: Payment of tuition fee up to Rs 1 lakh (Rs. 1.50 Lakh from A.Y. 2015-16)  can be claimed as deduction u/s 80C of the I T Act. But the payment of tuition fee for full time course must be for for any two children of individual. It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.

Question:- Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.

Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for the deduction?

Answer:- None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.

The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of an individual. The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee. All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify for deduction.

You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.

Question:- Can Mother claim the benefit of tuition fees paid for his son/daughter.

Answer:  Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.

 Question:- If a couple have four children, can they both claim fees for two children each?

Answer: Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.

 Question:- If a Couple has one child and paid a fees of Rs. 250000  can they both claim tuition fess 150000 each ?

Answer:  yes ,they both can claim deduction for 150000 each subject to they have actually paid same amount. If husband has paid 1.50 lac and wife has paid 1 Lakh then husband can claim 150000 and wife can claim 100000.

Question:-  Ram has paid tuition fees for his child 20000/- in February 2016  relates to period march to June 2016 ,how much amount he can claim deduction in assessment year 2016-07?

Answer:  He can claim full 20000 Rs in assessment year 2016-17 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.

 Question:-  Is Late fees paid with tuition fees is eligible for deduction ?

Answer:   No,late fees is not eligible for deduction under 80C.

EXTRACT OF SECTION 80C

Clause xvii of section 80C

xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4);

Subsection 4 of Section 80C

“(4) The persons referred to in sub-section (2) shall be the following, namely:

(a) ………………….
(b) …………………..

(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.

Note- (Republished with Amendments)

Posted Under

Category : Income Tax (20858)
Type : Articles (10773) Featured (3626)
  • Drsanjeevdmr

    i am a employee of ICAR on contract basis . i have  paid Rs.36000/ tution fee for two children. can i claim the income tax deduction under 80c

  • Naidu d

    i have a own sister, she is studying btech. i am paying her college fees. and i have a one more sister(Not a own sister) , and i am paying school fees for her daughter. Kindly let me know can i show those details in this tax savings.

    • Vijay Kumar

      No for own sister as she can not qualify for as your child, but you may claim for the child of your sister, provided you are not claiming for your own two children. means maximum two children are eligible on paid basis.

  • VISHNU

    whether registration fees paid for professional course (CA CS, CMA) to the institutes are eligible for deduction of 80C?

    • Vijay Kumar

      No, only tution fee will be eligible.

  • akash kumar

    university acadamic fess deduction income tax for b`tech

  • akash kumar

    my son studing in b`tech in IP university in delhi ?i paid acadmic fee 40000 can i claim for deduction income tax

    • Vijay Kumar

      Yes, tution fee will be deductible from your income u/s 80C.

  • Bharat Bakhru

    I have sent my Son for Further Education to Europe, Paid Fees from Indian Bank amounting to 13000 Euros can i claim that

  • r l singh

    if anyone is taking the benefit of children allowance i e 100*12=1200 yearly and deduted this amount in gross salary,can he take the benefit of tution fee paid by him under 80c,
    i mean to say that if anyone is eligible for both benefit u/s 10/(14)(ii) and u/s 80c

    • Vijay Kumar

      Yes Mr Singh, both sections are independent and mutually exclusive so both the benefits can be taken.

  • chadra shekhar

    Yes kidly tell me that i have one son and studying class 8th, its addmission fee is rs
    20000,but tution fees are 25000,therefore how i will submit under 80c. Both fees are may posible under 80c.

    • Vijay Kumar

      No only Rs 25k qualify under section 80C. You will give school fee slips to your employer, He will calculate himself.

  • Rajesh Nehra

    currently i m a central govt. employee and i want to rebate of income tax through Children education allowance can i do and how much rebate for me in this circumstances ?

    sir i requested to share the ans if any one have , on my e-mail id i.e. Pankaj173mishra@gmail.com

  • kamlesh baniya

    I AM IN GOVT. SERVANT … MY CHILD IN CLASS 12TH CAN REBATE ..

  • Afroz

    My 2.11 yrs baby girl got admission in lower nursery. Admission charges is exempted? can anyone advise in a **STAT** mode pls 🙂

    • Vijay Kumar

      Dear Afroz,
      **STAT** mode ???? it sounds greek to me.

  • Sunil Kumar

    Tuition fee for BBA is consider under 80C or not ??

    • Vijay Kumar

      Of course it is a full time course and tution fee shall qualify under sec 80C

  • syed mohd

    my son`s school mentioned as Fees only on the fee slip , shall i eligible to take tax benefit under tution fees

    • Vijay Kumar

      Dear Syed,
      Does not matter fee should be tution fee, for the satisfaction of your employer you may ask your child’s school to amend the fee to tution fee.

  • TAHER

    Suppose my expenditure on child’s education is Rs.60000. My employer reimbursed me Rs.20000 as children education allowance. What will be the tax implication? Will Rs. 60000 come under 80C?

    • Vijay Kumar

      Dear Mr Taher,
      Children Education allowance is taxable in your hand as 18800/- (Rs 100/- per month per child will be exempt) and it is separate than 80C, under 80C your are entitled for Rs 60k if it is Tution fee for a full time course.

  • rakesh

    Dear Sandeep

    in case tution fees is paid in advance then deduction will be available on payment basis or in year of expense? e.g. Fees paid in March 2016 for FY 16-17 of Rs. 1 lacs then deduction will be allowed in FY 15-16 or FY 16-17? Please clarify.

    • Vijay Kumar

      Dear Mr Rakesh,
      Reply is the same as to Mr. George above.

  • George Varghese

    Dear Mr. CA Sandeep Kanoi,
    I shall be very grateful to you, if you could reply on my below question.
    I have been paying tution fees of my daughter in March for the Academic year 16-17. As per above we can consider this amount for tax exemption of year 16-17. Please suggest.

    • Vijay Kumar

      Dear Mr. George,
      Section 80C starts : In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed 1.5 lac.

      Since ii is on paid basis, you will get the benefit in the year in which you pay it, so fee paid in March 2016, benefit will lapse after 31.03.2016, no benefit will be available for FY 2016-17.

  • Rishabh Shah

    Hello, I am paying fees of my brother’s education, and I don’t have father. He is dependent on me. so, Can i get the deduction of his fees from tax ? I have paid his fees by Cash.

    • Vijay Kumar

      Sorry Rishabh, You can not take deduction u/s 80C as IT Law says fee should be children, brother will not fall in that definition.

  • priyanka Kumari

    Term fee is not clearly excluded from tuition fees as per sec. 80C, so can i take the deduction of term fees.

  • Vijay Kumar

    Same as above, No Hindu no muslim, all are Indian or say humans. However Salam to your jajba !!! You will get benefit maximum of two children in a year on paid basis, section does not specify that the children should be your biological children.

  • Vijay Kumar

    No sir, only tuition fee qualifies. it specifically mentions tuition fee, examination fee and registration fee has character of of administration nature , thus disqualified.

  • Vijay Kumar

    No sir, but in the wake of queries above, in my view there should be change in law to meet the expenses of dependent siblings also, due to Indian system of caring families.

  • Vijay Kumar

    No sir, only academic tuition fee

  • Vijay Kumar

    Wah ! person is unmarried and claiming expenses of whife ? Tussi great ho rao ji.

  • Pramod Menon

    But Bala will she be able to avail the deduction benefits if she is not the one who is earning to pay the tuition fee?

  • gaurav

    I have taken education loan for my son’s education and tuition fee is paid with the loan amount. Will this tuition fee paid be qualify for deduction u/c 80C??

  • Dr Satish Yadav

    hi,
    my son’s tuition fees is 90 thousand for the academic year 2016-17. i am paying it in two installments for example first installment before 31st march 2016 i am paying 45000 and the second installment i am paying on April 30th 2016.
    can i claim deduction under 80C for two financial year ? year ending march 2016 (for I st installment ) and as well as year ending 2017 (for Second Installment)

    • Satbir Singh Yadav

      yes you can claim in both cases.

  • Kiran Munukutla

    can grand mother who paid the tution fee for 2 grand children, claim tax deduction

    • Ajitesh Ranjan

      no only parents can claim , grandmother is guardian

  • Rups

    I’ve a younger sibling aged 6yrs. I sponsor his education. Can I claim tax deduction?

  • rajni

    my aunt have 3 daughters , first is the elder daughter and second two are twins , can they claim tax exemption for 3 children u/s 80c ???????

    plz guide
    thanks

  • Rayamal S. Bharavad

    tuition fees paid by grandfather, grandfather can claim deduction under 80C ?

  • Rajiv Jain

    Refer Circular No.20/2015 dt.02.12.2015 “It is clarified that the amount allowable as tution fees shall include any payment of fee to any university, college, school or other eligible institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.

    Accordingly, payment for tutorial fees, computer fees, Term fees are eligible for deduction u/s 80C.

    • Ajitesh Ranjan

      no term fees is ineligible

  • m.r.venkatesh

    sirs,
    This year I have worked first 6 months as salaried person and later 6 months and i have invested 1.5 lkhs in PPF and tax deducted as per salaried class. I have worked as consultant / professional and they have deducted 10 % of income at source as tax. kindly guide me which ITR FORM I have to use for e-filing my return directly to cpc bangalore.

  • Satbir Singh Yadav

    Dear Sir,
    I have paid tution fee of rs. 6.15 lacs for my daughter in law(Wife of my son)in year 2015 and again in the year 2016 for afull time post graduate course in medicineMD Am I eligible for the deduction under 80c.

  • Satbir Singh Yadav

    Dear Sir Can I claim tax rebate for the tution fee paid for the post graduate course of medicine studying in aprivate medical college recogniged by MCI and UGC..Ihave paid fees in FY15-16 and FY16-17.Please advise me how to claim the rebate.

  • Satbir Singh Yadav

    Sirs I paid tution fee for the wife of my son i.e my daughter in law for FY15-16 and again in Fy16-17.She is doing post graduate course in microbiology called MD from Subharti medical college Meerut recognised by MCI and UGC

  • Satbir Singh Yadav

    is the tution fees paid mentioned below is eligible for exemption under the any clause of incometax.

  • Ashok Kumar Modi

    Can I claim deduction u/s 80C of Income tax Act, 1961 for Computer fees paid to my son’s school

  • Ashok Kumar Modi

    Can I claim deduction u/s 80C of Income tax Act, 1961 for amount paid to my son’s school towards Uniform and Books and Stationeries

  • vivek

    Can i Claim a deduction for my brother if Tuition Fees are paid to Pvt Ltd tuition

    • Vibhor Aggarwal

      Vivek,
      You can not claim deduction in respect of the amount paid for your Brother’s education as deduction u/s 80C is available for individual’s own children. Moreover, deduction is available for Full time courses. Private tuition is not covered u/s 80C.

  • Suraj Sah

    can i claim deduction for my brother education ??As,
    I am paying the whole money instead of my father.

    • Vibhor Aggarwal

      Suraj,
      Unfortunately, you can not claim deduction in respect of the amount paid for your Brother’s education as deduction u/s 80C is available for individual’s own children.

  • Arjun Singh

    Can I claim Tuition Fee of my nephew who has joined one of Institute for Engineering preparation?

  • Pooja Gupta

    can i get rebate on tuition fee paid for my daughter-in-law by me

    • Ajitesh Ranjan

      no it specifically specify children so you cannot claim.

  • Mereddy RaghusimhaReddy

    i paid my sister annual tuition fee 65k INR, can i show it under 80c ?

    • Ajitesh Ranjan

      no it specifically specify children so you cannot claim, brother sister relation not covered

  • Rahul N Agrawal

    I paid my sister tution fees, i have no father and my mother is house wife i m only a earning source, can i take tuttion fee deduction in income tax.