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
- 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.
Frequently Asked Questions (FAQs)
Q1. Who can claim the Section 80C deduction for tuition or school fees?
Ans. The deduction under Section 80C is available only to individual taxpayers. It is not available to Hindu Undivided Families (HUFs). The deduction can be claimed for tuition fees paid for the education of up to two children.
Q2. What is the maximum deduction available for tuition fees under Section 80C?
Ans. Tuition fees qualify for deduction within the overall limit of ₹1,50,000 available under Sections 80C, 80CCC, and 80CCD. The deduction is allowed on the actual tuition fees paid, subject to this aggregate limit.
Q3. Which education expenses qualify for deduction under Section 80C?
Ans. Only tuition fees paid to a university, college, school, or other educational institution situated in India for full-time education qualify for deduction. Pre-nursery, play school, and nursery fees are also eligible, whereas donations, development fees, transport charges, hostel charges, library fees, late fees, and private coaching fees are not eligible.
Q4. Can both parents claim a deduction for the same child’s tuition fees?
Ans. Yes. Both parents have a separate limit of two children each and may claim the deduction based on the tuition fees actually paid by them, subject to the prescribed limit under Section 80C.
Q5. Is the Section 80C deduction available for self-education, spouse’s education, or part-time courses?
Ans. No. The deduction is not available for tuition fees paid for self-education or a spouse’s education. It is also restricted to full-time courses and does not extend to part-time or distance learning courses.
(Republished with Amendments)
Sir ,can a person can clain deduction if three child studying in school and total fees is Rs. 75000
My father has no income and mother is housewife So both are dependent on me and i am paying my unmarried dependent sister’s tution fee. Can i claim tution fee under 80c? Please let me know
whether grandfather or grandmother can claim income tax benefit u/s.80C of the Income tax Act for their grand children lic policy premium for LIC PREMIUM PAYMENT MADE BY THEM?
Dear Sir,
I want know about which fees can i claim under sec 80 c ?
1. Tuition fees
2. Admission fees
3 Exam fees
4. education fees
5 Computer fees
6. Books fees
7. School Dress fees
sir, i am taking bank loan for child education so this deductible or not under 80c
sir, can a widow grand mother claim rebate on tuition fee paid for her grand daughter whose mother and father have expired?
I have contributed Rs 31000/- in NPS as 10 % of salary deductions and Rs 1,52,000/- in LIC, ULIP Premiums along with Nutation fees etc in the year 2014-15. Am I eligible for NPS contribution separate rebated more than the specified limit of Rs 1,50,000/- as I have already archived that limit in my other instruments of 80C.
HI,
My parents are dependent on me and i am paying my unmarried dependent sister’s fee.
so can i claim under 80 cc
Please let me knw.
I have paid tution fees for my nursery child on dated 22/12/2014 at 5000 rs. School give me receipt on date 01/04/2015. Nw in this cash i can claim rs. 5000 in 80 c for FY 14- 15. ( AY 15- 16) or i will it next year.
engineering college fee is Rs-83000/-
it is under section 80c —— or not for year 2014-15
please give reply
thank you
tutionfee for engineering college is Rs-83000/- is it under deductionof 80c or not.
please very urgent reply
Sir have claim rs. 30,000 /- on a/c CEA. now i have nul on saving hence i may be exempted for that or not
Really helpful information. But i have one doubt.
My brother is dependent on me. So, Can i claim the deduction of tuition fee under 80C?
Please let me know.
Thanks,
Abidali
sir,
I want to know that, whether Vidyalaya Vikas Nidhi collected by Kendriya Vidyalayas can be claimed for exemption of income tax or not
can grand parents can claim deduction for payment of school fees for grand duaghter u/s 80c ?
sir, my daughter and son are studying goverment college under engineering and medicine paid fees Rs.28000/- and Rs.30000/- including tution fees with hostel fees also . If goverment college fees all terms fees will be consider to deduct under 80cc. how much will be tax deduction under 80cc.
Pl attach circular for broad meaning of tuition fee. DDO not giving deduction for exam fee etc.
sir, my child 9th class high school tuition fee 45000/- paid eligible sir
I had three children, before three years i had availed the tution fee rebate in income tax for two elder children, in 2012 i was free from their liabilities and now in 2014-15 i only have the liability of my youngest child. thus i want to know if i can avail tax rebate on tution fee of my youngest child
Sir
I have paid Rs 14400 to kendriya vidyalaya towards vidyalaya vikash nidhi in r/s of my children. No fee is taken by kendriya vidyalaya as tuition fee but reimbursable as CEA( children education allowance). My question is whether the above amount is debatable under 80 cc for income tax or not?
2. I have a policy of pic. Sum assured is 4 lacs. Annual premium is 25,344 for 16 years. Doc is 28 Aug 12. How much rebate I should get under 80 c for income tax? Whether premium paid every year can be shown for exemption?
I paid tuition fee alone Rs.50,000/- for two children. I have reimbursed of tuition fee Rs.30,000/-from my office. Can I make Rs.20,000/- as deduction u/s 80-c. Please Clarify this matter.
WHICH ELEMENTS OF TUITION FEE CAN BE TAKEN IN SECTION 80 C e.g. tuition fee, paid for uniform, paid for books and like. Kindly elaborate.
i paid tuition fee for my sisters children’s so can i claim under 80c deductions
I and my father (child grand son) both paid for education of my one child. My father (child grand son) paid 50000 & I paid 1,40,000/- can we both claim deduction?
I have paid tuition fees Rs.30000 and out of Rs.30000,Rupees 15000 has been reimbursement by employer,My question is that how much amount should be deducted from my gross salary.Income tax on 15000 (reimbursed)has been recovered from my salary.
Hi,
My name is Pramod, i am paying LIC policy of my wife and two children. and i furnish the details of LIC. but my office said that to give paying certificate of LIC signed by me. so please give me its format So can i get a tax benefit under 80C.
Thanks.
This is very useful information to everyone
Balamurugan.k
Tution fees paid to private institute affiliated to Annamalai university for imparting interior decorating course is eligible for deduction u/s 80C
dear sir i want know abt which fees can iclaim under sec 80 c ?
1. science fee/ lab.
2. sports fee
3. computer fees
4. laboratory fees
Is Admission Fee is eligible 80 c alongwith tution fees ? pl. reply
I am a state government employee. I had paid Rs.56000/- towards Tuition fees in August-2014 to the College runs under Gujarat Technological University. My son is studying in 1st Semester of Bachelor of Computer Engineering. My employer’s tax consultant is denied to consider the said Tuition fees paid by me for my tax working under 80/c. They told that as per Income tax act, Tuition fees of primary or higher secondary education is only considered under 80/c and not considered for engineering study.
Is it True?
Pl. advise.
I am a govt employee.I have paid tuition fee andsame has been reimbursed by my department.can I claim the tuition fee for income tax exemption u/s80c
I have three children ,One is elder other two are twins ( mean three in two delivery) what are the limitation for only two children. Should I get rebate for all three tution fee.
I am a nautical science student, i have to do various courses to to to next rank, I am not yet earning, i was getting stipend, my father paid course fees for me namely GMDSS and four months function classes ( around 50k ) , can he include that in his tax exemption?
tuition fess paid by grandfather is eligble under section 80c?
sir tution fees paid by grandfather is eligible for deduction under 80c in grandfather return
My office is asking original fee book to reimburse the child education allowance (CEA)(Rs18000/-) per year. However I need the fee book for IT U/S 80C claim and for some other purpose. What should I do ? Is there any rule or directive exists for this issue? -Thanks in advance for your message.
I had paid C.E.A. in the last F.Y. and the amount was disbursed in April, 2014. The Dept. had deducted TDS of Rs.1500/- on C.E.A. and they did not include it in the quarterly TDS report. I am left in the lurch now because I am told that I cannot get this amount refunded. What should I do now?
INCENTIVE IS TAXABLE
If any one claim for rebate u/s 80C, alongwith the rebate in Children Education allowance rule 2BB. then, is amount of rule 2BB should be subtract in to tuition fee amount.
Sir,
Very crystal clear to understand….Superb Sir..
i paid tution fees 16000 and teaching fees 26000 how much can i claim under 80c?
i paid tution fees 16000 and teaching fees 260000 how much amount can i claim?
Dear sir,
I have paid 40000 fees for my sister. Can I get exemption for it.
Sir I paid my wife academic tuition fees who is preparing upsc at dristi ias academy in delhi my wife is unemployment and she is fully depend to me mentioned academy is private institute n I want to rebate for paid fees sir can I claim for income tax rebate n what section will be applied plz inform me thanks
Sir
I am 26 years old my mother is a pensioner my brother is studying. His fees is 3 lakhs per anum me and my mother pay the fees collectively my mother gets exemptions in tax
Can i too get exemption in tax as i too contribute in his fees
Thanx and regards
Hi All ,
This is who ever is given comment.
Please remember if you are giving tuition fee for your child and claiming for income tax under 80c , there is catch in all these as our government is playing safe ,
1) the max limit is 1,00,000 .
Now suppose your salary is 5,00,000 per annum in which government rules on tax act 1961 says that 2.50.000 is exempted then this 1,00,000 is part of 2,50,000.
2) They are playing smart and safe that no late fees and Donation will be included means if you are paying donation say example 2,00,000 to any institute or school, your money is gone and you have to go to either ‘C’ grade school or depend to bribe the government official to get the admission as still corruption exists.
3) Now suppose you have taken the education loan and paying interest , as per the rule the Taxable is interest. but if you are taking loan then it should include the taxable income on 40% of education loan not interest. where will include the interest and loan amount .
4) Tax on education loan only covers the full tenure , but what if parttime courses there is no benefit . Suppose your Child passes the the college , maynot get selected in campus selection then he has to invest more money on part time and reach to industry level requirement so that coorporates can accept his certification related to degree. and there is no tax rebate on same.
HOW SAMEFUL IT IS THE INDIAN GOVERNMENT IS RULING AND MAKING MONEY.
PUBLIC SHOULD BE AWARE OF ALL THIS.
I am paying school fees for my brother is there a way i can claim tax exemption for that?
Sir,
I paid tution fee of Rs 72000/= for year 2014-15 which I have reimbursed being a central Government employee. Depott leaves Rs2400 for two children without tax. Can the remaining amount be shown under savings. If so please mention the rule
sir, in assessment year 2013-2014 my turnover rs 4800000/- from constriction work & Rs.210000/- receipt from advocate profession can i liable for u/s 44ab audit give me Ply reply.