This comprehensive article delves into the intricacies of Section 80C deductions, focusing on the significance of tuition or school fees paid for the education of children. Covering eligibility criteria, maximum child limits, and practical considerations, the article elucidates the nuances of claiming deductions under Section 80C. With detailed insights, FAQs, and a summary of provisions, this guide serves as a valuable resource for individuals navigating the complexities of tax benefits related to education expenses. From understanding who qualifies for this tax benefit to exploring the permissible expenses, this exploration serves as a guide for those seeking to optimize their tax planning while investing in education.
Exam-Labs, a leading resource for educational materials and exam preparation, emphasizes the importance of understanding Section 80C deductions for tuition or school fees in the context of children’s education.
Deduction u/s. 80C for tuition / school fees paid for education of children
Page Contents
- Who is Eligible for Section 80C Deduction:
- Maximum Child:
- Expenditure paid for self education not allowable: –
- Fees paid for spouse:
- Maximum Limit for Section 80C Deduction:
- Deduction available on payment basis: –
- Section 80C Deduction not available for part time course:-
- Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :-
- Location of University, college, school or other educational institution:
- Allowability of pre-nursery, play school and nursery class fees: –
- Not allowable Expenses:-
- Summary of Above Provisions
- FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C
- Q.1 Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?
- Q.2 Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?
- Q.3 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?
- Q.4 Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?
- Q.5 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?
- Q.6 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?
- Q.7 I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?
- Q.8 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?
- Q.9 Can Mother claim the benefit of tuition fees paid for his son/daughter.
- Q.10 If a couple have four children, can they both claim fees for two children each?
- Q.11 If a Couple has one child and paid a fees of Rs. 250000 can they both claim tuition fess 150000 each ?
- Q.12 Ram has paid tuition fees for his child 20000/- in February 2019 relates to period march to June 2019, how much amount he can claim deduction in assessment year 2019-20?
- Q.13 Is Late fees paid with tuition fees is eligible for deduction ?
- EXTRACT OF SECTION 80C
Who is Eligible for Section 80C Deduction:
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 for Section 80C Deduction:
Deduction for tuition Fees is available up to Rs. 150000. Please Note that aggregate amount of deduction under section 80C , 80CCC and 80CCD shall not exceed Rs. 1,50,000/-.
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 2019 if Paid in March 2019 will be eligible for deduction u/s. 80C in A.Y. 2019-20.
Section 80C 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 Rs1.5 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 1.5 lakh, 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.1 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.2 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.3 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.4 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.5 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.6 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.7 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 1.5 lakh 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.
Q.8 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.
Q.9 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.
Q.10 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.
Q.11 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.
Q.12 Ram has paid tuition fees for his child 20000/- in February 2019 relates to period march to June 2019, how much amount he can claim deduction in assessment year 2019-20?
Answer: He can claim full 20000 Rs in assessment year 2019-20 , 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.
Q.13 Is Late fees paid with tuition fees is eligible for deduction ?
Answer: No, late fees is not eligible for deduction under 80C.
Conclusion: Understanding Section 80C Deduction is vital for maximizing tax benefits on education expenses. By adhering to the eligibility criteria and knowing the limits, individuals can optimize their financial planning. Frequently asked questions provide clarity on specific scenarios, ensuring taxpayers make informed decisions regarding tuition fees and tax deductions.
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.
(Republished with Amendments)
Author Bio
Sir
My child is in nursery in a monetsary school
I want to know that whether I will get exemption u/s 80C
Please advice
i am studing master of law, my father is retd govt employee, can my brother can claim the tution fee exenption under income tax act.
my son join mba from delhi pvt institute all redy made the payment installment basis 3 lakh fees submit in institute
pls answer me allow in income tax 80c section allow/not allowed please mention to me
Hi,
I m Govt employee,i spend Rs25000 on education while working,how i can save tax for the same,please guide me.
Sir,
I am an Govt.employee i got Rs.12,000/- as children education allowance from the department. Sir i wish to know that i have to take 12000 as income and same as deduction u/s 80C of income tax act
please also guide i have heared that an amount of Rs.1200/- (Rs.100/- per month tution fees) so total amount to be shown as Rs.10,800/- and sir shall i have to deduct the same amount or 12000/-
what will be the amount of tuition fees to get deduction in income tax?
Q. Can can claim deduction u/s 80C of Income tax Act, 1961 for above 18 year age children engineering college tuition fee paid for 2 children?
Is annual charges/fees paid at the time of admission can also be cliamed for the deductions?
i am a private employe . my father have been retired and i have a younger brother he is studying in m pharma . Can i cliam of his tuition fees in my saving
Can Grandparents claim deductions for tution fees paid for grandchildrens for full time education.
I am a government servant and my chidren are studying in public school where my wife is also a teacher. They get free education (only tuition fee is exempted). Can I still claim uniform, shoe, computer fee, games fee charges from my office?
Can I claim deduction under 80c for tution fees paid for the children by my spouse as his income is not taxable
Really very useful information
Kindly confirm the limits of children hostel allowance upto which tax benefits are available in a year.
can a deduction be claimed under section 80c in respect to tution fee payed for which education loan has been taken and rebate under section 80e is claimed?
is it possible to claim tax deduction if the education fees is paid for my sister? pls reply
what document is required at the time of tax filing for taking rebate under section 80E (rebate on education loan)
Above gives more clarity about tax exemption for Tuition fees. I think the confusion will over on reading this. Good. Thanks also .
Earlier under Sec 88, limit for tuition fees was there.Sec 88 is not there now. Now under Section 80C, the limit for exemption of tuition fees is within the overall limit of Rs1,00,000/ upto two children.There is no specific limit for tuition fees. Exemption not available for self, brothers or relatives.
Hi,
My daughter had joined the play school in NCR and in same school she is also availing the crèche / daycare facility. Currently, I am paying 900 (Receipt says “Tuition Fees”) for school charges and 2000 (Receipt says “Daycare” Charges) for crèche charges. Can I utilize both the amount under 80C.
Request you to please reply.
Rgds,
Nitin
Hi
I am an NRI and my daughter is receving income from her portfolio investments in India. Is this allowable for educational deduction since she is studying for BDS in India.If not what is the alternate club with Family Income. Please advise. Thanks
Hi,
i am paying the college fees of my brother and sister. it is eligible to me and how much is the deduction is given me.
thanks
As per 6 CPC Cetral Govt. employees are eligible to reimburse the Children education assistance contains tuition fee, a set of books and note books, two set of school uniform, shoes etc. limited to Rs 12000 per child per annum for two child. Whether this amount of Rs 12000/- is exempted from tax or to be calculated in saving which is limited to 100000/- please clear my doubt.
mahesh
maheshprasad39@yahoo.com
Hi,
I am paying the Tuition fees for my nephew (sister’s son). Pls let me know if I can claim tax benefit against the same.
My father is a retired person (not earning), hence both my parents are dependant on me apart from a younger brother who is currently studying. I take care of all his education expenses. Can I claim his college fees as an exemption under this section? Please advise. From going through your response above I get a thought that I can claim, however would like you to confirm on the same. Thank you very much for your support.
Please clear my doubt. In my openion, the tution fee up to Rs. 12000/- each for two child are exempted u/sec 80C i.e. total Rs. 24000/- max. if the assesee has paid 15000/- for 1st child & 9000/- for the other, then he/she may claim only Rs. 21000/- (12000/-+9000/-)
U/sec 80 C the limit is 100000/- which include all the savings etc. but the education expense part is only 24000/-. Is it true,
please clear my doubt.
ajay agarwal
akag62@gmail.com
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 under Sec-80C so fee paid to NIIT, not eligible for deduction.
My son is doing GNIIT course in NIIT and his annual fee comes to approx. 60K, out of which Rs. 20K is the tuition fee. It is a 3 year course.
My account dpt. says that the tuition fee paid to NIIT is NOT eligible for deduction under Sec.80C ..
Your confirmation will be highly appreciated.
Regards
RChandran
what are the Terms and conditions under which we can get deduction of tution fee in Play school? Like is it required for play school to be a registered one?
the fee receipt given only mention school fee & do not show any bifercation , wheather it is permissible of rebate under 80c.
Sir,
I want to know whether one can claim deduction of tution fees paid out of education loan taken from financial institutions, under section 80 C of I.T.Act.
More specifically, one has paid Rs. 100,000/- as tution fees partly i.e. Rs. 80,000/- from Education Loan taken from financial institution and Rs. 20,000/- out of his taxable income. My query is what is the amount which can be claimed as deduction under section 80 C towards payment of tuition fees– Rs. 100,000/- OR Rs. 20,000/- OR NO AMOUNT.
I rqt yr early reply as the f.y. is just to close.
Thanks & Regards
I am paying each month Rs. 100/- as Tution Fees and Rs. 1700/- as Educational Activity Fees for my child. Such educational fees DOES NOT include development fees, Library fees, Session Fees, etc which are being paid extra. Can I claim deduction for the ” Educational Activity Fees” ?
I am paying tution fee for my nephew shall i take benefit u/s 80C
Is the amount reimbursed through Children education allowance scheme taxable? Moreover tution fee actually paid can be claimed for IT rebate?
family planning allownce is taxable income or not???
I am not understood about additional investment of Rs. 20,000. Please clarify.
TERM FEES,ADMITION FEES LABORATORY FEES AND OTHER FEES ALLOWABLE
TERM FEE IS ALLOWABLE UNDER SEC 80C DEDECTION
whether term fee is allowable under sec 80c dedection
I am paying Rs 26k as education fees for my one child and in additon I am paying annual term and admission fees seperately.
However my tax consultant is saying that eduction fees are not eligible only tution fees are allowed for deduction.
Kindly suggest me is there any difference in education and tution fees?
what is the limit of deduction of tution fee under section 80c ?
1. Upto how much amount towards educational allowance is to be exempted per child.
2. Upto how much amount towards Hostel subsidy is to be exempted per child.
Will the registration fees,admission fees,annual fees(for photography, books,bag etc)& miscellaneous charges(for picnics, excursions etc)paid for play school ,be eligible for deduction?
My sons fees includes, tution fees, admission fees and instutional examinations fees. Can you please confirm if admission fees and instutional examinations fees are eligible for deductions
I have taken educational loan amounting to Rs.50,000/- for higher studies from nationalise bank. I am claiming the interest under section 80E. I want to know that I can claim the amount of tution fees for which I had taken educational loan under section 80C
My son’s playschool receipt does not specify the fees as “Tuition” fees. The receipt just says “Playschool” fees. Can I use the amount for tax deduction claims?
Would like to know if exemption under sec 80-E is available for part time professional courses also.
Would appreciate your reply.
Is the term ‘tuition fees’ also includes book fees?
Ply reply.
thanks in Advance.
I like this too much for tax practitioans & for me too… thnkx
Just fantastic education for the general public or non legal related person. It’s appriciable.