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
As i am unemployed currently and had received may last salary in the month of June2021, how can i claim in my ITR for AY 2021-22 (FY 2020-21) if i paid my son’s school fee for the FY 2020-21 in the FY 21-22? i.e. can i claim the school fees of FY 20-21, in the ITR for FY 20-21 if i have paid it in the FY 21-22? please advise,
Thanks
Best Regards
Sunil
Hi sir good evening we are seniors citizens my daughter is no more , one child minor looking ( takers ) Har grand child but know Sum of investment made to future savings of child I am is the proposer of policy can I have to claim of 80C , please clarify
Whether the fees paid to Allen Career Institute for preparation of NEET Exam is deductible u/s 80C?
I paid College Fees of Rs. 235000/- to Siksha O Anusandhan Deemed University, Bhubaneswar for Ist year B.Tech of my son. Is this allowed for deduction u/s 80C?
Respected sir.. I am ammu(widow).. I have 2children .. I am poor family… My children’s are studying 5th and 3rd..nobody can help with my children education.. I worked in small clinic.. That salary not able to pay my children study fees so kindly help with my children.. My father also died last year.. So please help my children sir… 🙏🙏🙏
My first year tution fee is cancel because I have a back… So i can get second year tution fee if I pass in second year
if assessee has paid tuition fees of his nephew who is dependent on him, can he claim deduction of tuition fees?
If a father or mother made payment of tution with other person account whether they can claim deduction under Section 80C or not ?
My wife is a free lance consultant. She has paid for her own fees for Ph.D. at IIM Indore. Can she book this fees as expense from IT return perspective?
What is deducted for annual fee and
Examination fee school level
Can a central government employee claim tution fee for two child in 80c when the tuition fee reimburse by central government
Tuition fee is36800 for one child but reimbursement amout is 27000 per child
How to claim deduction under Tuition Fee if school is charging fees under Composite & Exam Fee?
My son studies in Noida and got a composite fee amounting to Rs 1,39,541, please advise how much can be claimed by me under 80C
Sir, can I claim rebate under section 80C for all other expenses related to education such as purchase of books, stationery, uniform and shoes apart from tuition fees paid to the institution?
KINDLY CLARIFY WHETHER THE AMOUNT SPENT TOWARDS PURCHASE OF SCHOOL UNIFORMS, SHOES AND BAGS CAN BE INCULUDED UNDER SECTION 80C
my kid is bachpan play way. tution fee from this school is applicable for income tax exemption or not?
I paid the tution fee of my sister and brother, can i claim it for income tax deduction, and they are dependent on me
MY son school has given paid fees as mentioned “Education fee” in receipt. SO I submited it in my account office for deduction under 80C …. But account officer refused to involve it in under 80 C….. He said only Tuition FEE word can be covered in it…… So what is the difference between EDUCATION FEE AND TUITION FEE???????
Sir, I have paid Tution fees for my Son for ICMA Final course. Shall this fees is eligible under section 80C
I HAVE CLAIMED 25000 AND AFTER DEDUCTING TDS OF RS 5000 #20% I RECEIVED RS. 20000 BY MY EMPLOYER. WHETER 25000 SHOULD BE INCLUDED IN MY GROSS SALARY INCOME AND AFTER THAT U/S 80C DEDCUTION OF RS. 25000 CAN BE CLAIMED.
Can we claim eduction fee?. In some school they are mentioning as education fee instead of tutition fee.
Sir can a senior citizen or pensioners claim tuition fees paid for their grandchildren under 80c
What is the difference in between professional educational fees and tuition fees.
Hi
Being a sister, can I claim tution fees paid for my brother’s education (engineering degree) under section 80C with stipulated limit.
I have paid my daughter’s college education fee (Hotel Management Degree) as Registration fee Rs.22000, Study Center fee 18000 and practical fee Rs. 25000, Can I claim these all fees u/s 80C ?
AS A GRANDFATHER I AM PAYING TUITION FEE FOR GRAND DAUGHTER
WHETHR AS A GRANDFATHER CAN I CLAIM IT EXEMPTION
If a child join for any school in India can parents claim deduction U/S 80C
I have adopted a child less than 1 year old and expense including his one time insurance is 4.0 lacs. Can I get any tax benefit on expenses.
Can I claim tution fees of my preschool kid for 80 C?
Sir school takes as a fee
Tution fee – 1200 per month
Computer fee – 150 per month
Pupil fund – 125 per month
Which will be deductible
My department says that only 100 per month fixed amount will be deducted for everyone. What shall I do?
Hi.. I am paying fees for my niece. Can it be included under this section?
Can I claim rebate on computer fee as the school charges a computer fee in addition to the tuition fees for my children?
Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?
Can I claim deduction u/s 80C of Income tax Act, 1961 for my wife.
Schools are taking a total amount of Rs.1,00,000/- per year and give receipt accordingly. Nothing has been specified. Receipt says Simply school fees of Rs. 1,00,000/- has been received.
How much amount can be claimed under 80C ?
i reimburse tution fees of my child can i deduct in 80 cc for tax saving
Does vidhyalaya vikas nidhi paid to Kendriya Vidhyalaya qualify for deduction under section 80 c as tuition fee.
Can have claimed on Tution Fess in Section 80C.. But the tution fees would be paid my husband in bank account .. I have to be claimed on my Income tax as section 80c
Suppose if I take home loan of ₹20lakh paying an EMI of
₹19229, what r the components that I can claim as income
Tax benefits. And how can I can claim? Can u plz explain
Along with an example bcoz I am really confuse abt the
Component (principle/interest) that I can claim.
SIR,
WE HAVE PAID RS. 300000 FOR MY YONGER CHILD ENGINEERING EDUCATION,
WE HAVE CLAIM REBATE OR NOT
Can i claim deduction for tution fee paid for my grand son undder section 80c
An education fees is paid by Grandfather. Whether he can take the benefit from Tax Exemption.
Maharastra Govt announced that there will fee concession those studying in Engineering or Medical College, if the family income is less than 6 lakhs.
But my question is what about if two students are studying and then any concession if the limit is not in that range.
I am a gov employee I got as educational allowance for rs 18000 for my child but actually expanse is rs 30000 how can I apply for tax deduction
I paid tution fees for my son’s education year 2018-2019 on feb2018.May i know which assessment year i’m eligible? FYI, I already filled income tax for the assessment year 2018-2019, Thanks in advance.
IF THE INSTITUTION IS NOT MENTIONING THE BREAKUP IN BANK CHALLAN BUt FOR IMPATING EDUCATION ONE FEE IS COLLECTED(GROSS) WHETHER FULL AMT IS ELIGIBLE UP TO 150000(now many colleges/schools are following)
My father passed away. I am now paying for my sibling’s education. Is that eligible for 80c?
Fees for the F year 2017-18 paid on March 2017 in advance. Can I claim deduction u/s 80 c in Assessment year 2018-19
if I single not married, I paid college fees of my sister or brother child can I take the deduction under 80 C
I am government employee my elder son study at USA and younger at bengaluru. I have paid tuition fees and hostel fees also both son(hostel fee elder son 40000 PM and elder son 65000 per year . I am taken education loan for elder son, currently I have paid only interest.
1. My question is: 1) whether I can take Income Tax exemption or claim under HRA? If yes both son or?
2. Any limitation? Or any rules
3. Which benefits I can avail on the above expenses?
I want to know the professional courses are comes under 80c or not??