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
Hi,
I am paying the Tuition fees for my niece. Pls let me know if I can claim tax benefit against the same.
I am an NRI, My earnings in India is NIL. I have given capital sum to my wife, and she has deposited in banks, but it is kept in joint names with me. She gets an overall interest of Rs. 350,000 annually. She gives Rs. 50,000 for LIC and Rs. 85,000 for our elder son’s higher education. Can she claim exemption under Section 80C
hello,
if am earning 4,50,000 per annum.i have savings of 1lakh under section 80-c,remaining 1,50,000 is my taxable income.my doubt is what is the excemption limit for section 80-d and other sections.
can a grandfather claim deduction u/s 80c for payment of tuition fee for his grandson
Dear Sir,
Pls advice there is any procedure for issue RC against Education loan?or can any bank issue RC against education laon if the student has not able to get job for repay the laon and his family condition is so bad.if a student unable to repay the education loan within time then bank can issue the RC against him.
Pls get this and and kindly advice for this issue.
Awaiting for your Immediate Reply.
Thanks and Best Regards
Vikash Jaiswal
Delhi,India
i think that tax department should give the deduction benifits of payment to private coaching intitutes for professional courses like (CA, engenearing, medical etc.).
I am Central Government employee, s the reimbursement of tuition fee and medical allowance are taxable? If taxable under what section?
hello , i am working unmarried woman can i claim my brother’s tution fee as my father is a retired person
I want to know applicability of section 80 C for payment of Education Fees in case of legaly more than 1 wife (say 2 wives) & each has 2 children…………………
” AS MENTIONED IN ACT THAT FEES PAID TO ANY PRIVATE TUITIONS NOT ALLOWABLE FOR DEDUCTION, MY QUESTION WAS :
A) IF AMOUNT PAID TO PRIVATE SCHOOL FOR EDUCATIONAL STUDIES UPTO 12TH STANDARD,WHETHER ALLOWABLE ?
B) IF AMOUNT PAID FOR “GOVERNMENT COLLEGE “AS “TERM FEES” FOR UNIVERSITY COURSES LIKE B.COM’S TERM FEES, WHETHER ALLOWABLE ?
I am under new pension scheme and my employer has included the contribution i.e. 10% of my salary, given by employer, into my income. Please tell me can i take benefit of this contribution excluding 100000 limit under 80CCD(2).
If i have paid LIC Policy being due in last year December 2011 & paid in current year in May 2012 with applicable penalties
Can i claim the same agaist last year tax liability.
Awaiting reply
Dear Sir,
I have a query regarding S. 80 (e) Exemption under the IT Act. I availed an education loan in 2010 and have started working now. My office has categorized my employment as a “professional” and not as a salaried employee. I want to know whether as a professional fee earner (they pay me a retainer fee) if I can use this deduction. If not, are there any other methods that I can claim a deduction under the IT Act as a professional fee earner. Can I make an application to the regional AO to grant a certificate for exemption of TDS or will I have to file and claim taxes at the end of the financial year. Thanks.
I forgot to mention, my niece is not dependent on me and I have not adopted her. She is my sister’s daughter and my sister is earning member. I pay 4 lacs every year. Can I get some exemption on tax if I show the DD cut to the College from my account?
I’m paying my niece’s medical college fee every year. Can I claim tax deduction under Section 80C. Its a payment seat.
What is tution fee.. in fact some of the schools not mentioning in the bill as tution fee..in that case shall we claim entire fee
Shall I claim tution fee related to my spouse and my self
Every year we have to pay,around 30,000 for Karnataka education Athority for engineering course. Will i get tax exemption on this?
I am working in a charitable institute where an employee gets a scholarship amount of $20 monthly for our children and since we are paying a tuition fees for the school. so what is an exemption amount under u/s 80c in my case.?
URGENT HELP REQUIRE PLEASE. THANKS IN ADVANCE.
” AS MENTIONED IN ACT THAT FEES PAID TO ANY PRIVATE TUITIONS NOT ALLOWABLE FOR DEDUCTION, MY QUESTION WAS :
A) IF AMOUNT PAID TO PRIVATE SCHOOL FOR EDUCATIONAL STUDIES UPTO 12TH STANDARD,WHETHER ALLOWABLE ?
B) IF AMOUNT PAID FOR “GOVERNMENT COLLEGE “AS “TERM FEES” FOR UNIVERSITY COURSES LIKE B.COM’S TERM FEES, WHETHER ALLOWABLE ?
what if school changed two times and tuition fee paid thrice for all school for same period
HI, I am Dharmesh Modi from Ankleshwar, Gujarat..
from last 4 to 5 yrs i have paid the Medical premium of my Parents & younger Brother..
i.e one policy for My self, wife & 2 Child for Rs. 9,000/- and 2nd Policy for my younger brother & Parents for Rs. 5,000/- so total i am paying Rs. 14,000/- of every yr.
Let me know can i get IT examption U/S 80 D..
Rgds,
Dharmesh Modi..
Hi, today i have admitted my son in school & for that i have paid the his ADMISSION FEES in school also 1st Term Fees so pls. explain me can I tax the benefit i IT whether it is taxable or non taxable and if i take the benefit so what is the limit for it?
also as per school norms they receipt only term fees for half yearly (means twice in a yr) so also its a taxable or i take the benefit?
pls. guide me..
Rgds,
Dharmesh Modi..
I want to know whether i can claim fees paid in cash by myself for my brothers son during last the year 2011-12 as a gardian.
My brother children totaly depend on me So, I have pay fee .
Let me know can i get IT examption U/S 80
if a staff is working in the same school where his children are studying> The education is free to them . Can this be taxable
I want to know whether one can claim deduction of payments to education loan taken from financial institutions, under section 80 C of I.T.Act. or under any tax law
THis education loan is to pay only for tuition.
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 AMOUN
I would like to read your reply to the above questions. Are they available?
sir, I have taken a educational loan on 20/06/2011 from sbi and my father is the guarantor for my loan and we started paying the loan from 20/07/2011 onwards with 13.75 %floating roi for a duration of 7 years.so I have the following queries.
1.who can avail the loan me or my father?
2.when can we apply for this loan and to whom?3. if my father can avail the loan then currently his salary is 4.6 lakhs/annum. so how much benefit will he get under section 80 e?
please give a clear picture about the scenario. thanks
I have taken a loan to pay tuition fees of my son, can I claim the tuition fee u/s 80C and Interest paid to Bank u/s. 80E
My daughter’s Fee Receipt mentions General Fee, Special Fee & Establishment Fee, which is 25000 (Total Fees paid for the year 2011-12).
Does General Fee, Special Fee & Establishment Fee are under tuition Fee for deduction u/s 80c?.
Please clarify.
Sir,
We are school tour operator,we conduct only educational tour for different schools,which includes there educational activities,Meals,Accommodation,Transportationare we entitled for service tax exemption since we conduct educatrional tours,Kindly focus us on this Issue.
Sir,
One of my colleague has given a “Bonafide Certificate” from School mentioning that “XYZ” amount has been paid as “TUITION FEES”.
Is the certificate valid for claiming deduction u/s 80C for education expenses?
I think the IT rule says “RECEIPT” is required. Please clarify?
is the computer fee,sport fee & misc fee is allowed in tution fee for deduction u/s 80C?
Hi i am paying my brother’s son and doughter school fees, can i get deductin under section 80C
please advise
can i claim exeption of Rs:200 p. m. & tuition fees u/s 80C for thw same child
I would like to know, If I claim Children Educational Allowance (ie Rs 100/ per child per month to a maximum of two child), Can I include the educational fee of my children in 80C.
we are paying more school fees, why we can not claim special fees, nowadays all schools tuition showing less others fees charging more can you suggest for claim
Dear sir,
My total salary for 11-12 will be 2,28,000/- plus Rs. 24,000/ As L.T.A. & Medical. No other allowance and benefit are there. I paid Rs. 48,000/- Approx. as tuition fees for my children. May i know that what will be tax tax liabilities for me ?
Dear sir,
I Alok kumar, I am paying my brother tuition fee and collage fee and also my correspondence mba fee. Can I get tax benefit ? if yes pls provide me details of section.
Regards
Alok kumar
09871778134
any deduction of tution fees paid for education for computer classes or no & also i tution classes done in private is that allow or no
I am paying tution fee for my brother and sister. shall i take benefit u/s 80C
Hello,
I want to know if any person paid his children fees, and fees receipt mention separately Tuition Fees and Annual Fees, can he claim Annual fees also or not????
Dear Sir,
Eduction Loan Princial & Interst which maximum amount allowed in TDS on Salary .
can we claim the tax deduction for book fees,abacus fee and activity fee?, because some school giving bill all put to gether under tution or term fee bur some school giving listed bill, the term fee mentioned very low. How we get apply the amount for deduction?.
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
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
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
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
what happens if an assessee forgot to claim exemption u/s 80c for LIC. & files his return. can he take the benifit u/s 80c.plz reply soon.