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
i am an employee,can i claim deduction of income tax rebate for eduction fee of my wife,and i just married three months.
Satish Jagtap
dear sir
i want know about which fees can i can claim under sec 80 c ?
1. Term fee
2. Tution fee
3 Laboratory fee
4 Library fee
5 other fee
6 Bifocal fee
My father is not alive . My mother is not employed . My younger brother is studying in 11 th standard and both are my dependent and there is no income source except me as I am working as school teacher and bearing all home expenses including school fees for my younger brother . can I take rebate under section 80C against the tution fee paid for my younger brother. Pl reply urgently.
Thanks and regards
Dear Sir,
My father is not alive. I m having my mother and my younger brother both are my dependent as there is no body and no other source of income is there . I m paying school fees including tution fee for my younger brother who is my dependent. Can I take rebate for the tution fee paid for my dependent brother . Shall be grate ful is matter is cleared urgently. Thanks and kind regards.
Sir l have two children can l avail tuition and fees rebate under 80C as l am the only earner of the family
Thank you very much for the valuable information. It cleared many doubts.
Education fee paid for children who is studying aboard can be taken into 80C
I am paying tution fee for my niece. shall i take benefit u/s 80C –
Thanx…cleared many doubts
I am receiving Rs 18000/- per year as children education allowance which is added in my salary. out of which 1200/- is exempted. can i still claim deduction of tuition fee paid for my son under 80c.
I am receiving Rs 15000/- per year as children education allowance which is added in my salary. out of which 1200/- is exempted. can i still claim deduction of tuition fee paid for my son under 80c.
Can I also claim tax rebate on tuition fee paid by me for my real brother …
I am paying tuition fees of my Real sister as my father is not doing any business or earning. Am I eligible for getting deduction u/s 80C for such tuiton fees.
KINDLY LET ME KNOW WHETHER ADMISSION FEE PAID DURING ADMISSION IS ELIGIBLE DEDUCTION U/S 80C
if i submit receipt of tuition fees Rs.12000.00 can i get benefit of Rs. 12000.00 directly deducted from my tax? or only 10% –
please tell me the rule or what is the process?
I have a younger sister who is doing MBA. If i pay her tuition fees, will i be eligible for tax deductions under section C or any other section of Indian Income Tax Act?
MR.SANTOSH U WILL ABLE FOR DEDUCTION FOR YOUR SON’S TUTION FEES UPTO RS.100,000 U/S 80C
please tell me the rule or what is the process?
if i submit receipt of fees Rs.12000.00 can i get benefit of Rs. 12000.00 directly deducted from my tax? or only 10%
My son is studying in bcom will I claim for tution fees for him
My saving is already covered under 80C. My wife salary doesn’t come under salary bracket.
My father wants to pay my daughter school fee, will he be able to claim the tax benefit under 80C?
Thanks
One lady individual whose children is in US for studies. Can we take his educational fees under chapter VIA(80C) and show in his mother’s ITR?
I am a public sector unit employee . I get rs. 400 per month as a school fee reimbursement . I am getting only rs100 per month non taxable. Remaining rs 300 per month as a taxable income. Pls tell me this is correct or not as per tax laws.
Dear sir,
My income is 4 lacs. I would like to know how can I save all my money. I would also like to if I am doing few computer courses can I show them? My father has an ins policy, can I show that? My brother is in US can I show his tuition fees? If I have given my friend sum amount as loan can I show that? What I need to do to show it?
Regards
Aadi
Dear Sir,
I am the only persn working in my family. If I do a few computer courses along with my job this year, can I show its amount for tax form this year? My total income is approximately 4lacs. Is it possible to not pay tax for this whole amount? If yes then please tell me how to plan. I don’t have any loans. I don’t pay rent. My father has an Ins. Policy. I have a PPF account. I am doing few computer courses. I hope to hear from you soon.
Thanks
Regards,
Aditya Chawla
what will be the amount of tuition fees to get deduction in income tax?
Can I pay tution fees for my nephew and claim deduction?
Hi,
I am currently employed with an organisation and also pursuing PhD part time. Can I claim deduction for the fees of my PhD course?
P.S- PhD course is from an institute of national importance like IITs run by MHRD
whether any person can take rebate of fee for any polytechnic courses paid for his/her children
Its very nice article.helped me
its very nice article.it helped me
sir, i need a clarification on 80-c which we should only take tution fees in 80C or the other fees like computer fees, lab fees, special fees also we can take it in 80-c, pls help
dear sir
i want know abt which fees can i can claim under sec 80 c ?
1. visiting faculty fees
2. tutorial fees
3 material fees
4 exam fees
5 call center service fees
6 p.t.a. fees
7 counseling fees
8 entrance fees
9 semester fees
10 education fees
11 computer fees
11 laboratory fees
12.annual fees
13.e.learning fees
14.late fees
15 extra fees
above r all kind of fees among of those which fees should be claim ?
Does General Fee, Special Fee & Establishment Fee are under tuition Fee for deduction u/s 80c?.
Please clarify.
I am working in a CBSE recognized unaided school in Delhi. My two kids are studying in the same school. I get discount of 70% in tuition fee of my kids (as staff member as per Delhi Education Act.) other charges like Annual Charges, Development Fee etc i need to pay as normal. My school accountant add 70% (Tut ion Fee) discount to my income, hence I pay income tax on the discounted amount . I would like to ask that :
1. Is this valid to add discount to my income.( Earlier they used to give me 12D form)
2. Can I claim income tax benefit on the rest of the fee I pay (excluding Development Charges)
3. If I can claim benefit then for how many previous years I can can claim.
Please reply urgently
can i get deduction u/s 80c for payment of computer fess for my children?
if i have paid school fees can my husband claim tax deduction for the same or he has to pay the fees then only he gets deduction also my husband falls in higher income group as an assessee.
Dear sir
I am assistant prof. in a private engineering college. I am paying the fees of my sister who is doing Master of Technology. My father is paying the fees for my brother who is doing B.COM and my second younger sister who is doing B.E. and my father is saving taxes on the fees of both too. Can i save the taxes on that fee?
Can you please clarify me about admission or re-admission fees for Tax Tax rebate U/S 80C.Tution fees are paid monthly and Admision or re-admission fes are paid during the time of admission or re-admission.So would be much oblized if you kindly let me know admission fee is eligible u/s 80 c alongwith tuition fees?
Can the exemption be claimed for the fees which is mentioned in the receipt just as “School Fees”. In fact there is a separate receipt is available with me for the building fund paid by me.
kindly , let me know can i have tax exemption on the education amount paid by me for my dependant siblings under 80C or any aother section. also let me knoe tax exemption under gift . how to do it
Sir, I am a Govt employee. I have already claimed CEA of Rs.15000/- and reimburse made by the department. Further, I have entitled for rebate of tuition fee in income tax under section 80C.
whether we take take deduction for ca final registration fees and examintaion form in our income tax return??
is tution fees paid in foreign currency by indian resident assess for his son to indian university… is assessee eligible for 80C? Please reply to my mail gaurav141@gmail.com
if admission fees and instutional examinations fees is includes as tuition fees. Can you please confirm if admission fees and instutional examinations fees are eligible for deductions
I LIKE THIS COMMENT FOR MY KNOWLEDGE.
I have an adopted sister and I take care of her schooling. Can i submit her school fees for income tax exemption??
Can i take benefit of Housing loan if loan on Joint Name
How much deduction allow.
Whether tuition fees paid for major son studying in B.Tch. from private engineering college is eligible for deduction u/s 80C?
As per this paragraph “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.”
IF there is four children in family can father and mother claim deduction separately for two two children?
If we (both father and mother) have paid 1.2 lakhs as Tuition fee for the only child we have as Demand Draft, how do we split the tuition fee for Tax deduction
“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.”
With reference to above para, I referred the Taxman’s income tax reckoner wherein u/s 80C a Note 10 with Tuition Fees says: “The amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.”
Can you please clarify what does the text “any payment of fee” refers to?.
Doesn’t this include payment of fee towards library, lab, computer, special classes, games, books, transport, etc.?