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 paying 90000 fees for my kid in 3 installments (means 3 terms) can I claim that under this tuition fee
Q. My daughter is studying 1 year diploma course on Remote sensing & GIS from Jadavpur university (July 2015 to Aug 2016). Total course fee Rs. 42000/-. They (Jadavpur University) will take the amount in three installments through DD. which I have already paid for Rs. 32000/- in favour of Jadavpur University. Can I claim tax deduction? Kindly advice.
i am a central govt employee. in previous year i got deduction of rs. 2400.00 from my income as child education allowance under section 10(10).
shall i get again another deduction u/s 80c of my paid tuition fees of my two children to meet up savings 1.5 lac.
Are publication charges in open access journals exempt from tax deduction?
Can the fees be paid in cash? If yes, how can it be decided which parent paid how much?
Can I apply for tax-exemption if I pay for my brother’s education. My father is also a working person.
i m working woman and i hv taken education loan of my son. can i avail tax benefit on his tuition fee amount
Thanks, I got my answer in your post.
Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C .
Hi,
Can I claim School Tution fees and Coaching tution fees (both) for a child in 80c Tax benifits ?
I am a retired senior citizen and I am a Tax payer on the interest which I receive from Banks. My son is studying and he gets monthly stipend from the institution and he is also a taxpayer. As a parent, can I claim deduction under Section 80(c) for the tuition that I pay for his studies. When I approached an auditor, he told me that if he is earning, I can not claim under section 80(c). Where is that rule written in the Income Tax act?
Kindly clarify.
Prof.Murty
The article is very informative. Thank you Sir.
hi sir,
i am paying my sister college fee can i claim on 80 c
I m govt servant n I m paying my sister’s college fees as my father is no more my sister is totally dependant on me…
So, can I claim for my sister’s education fees…
I m govt setcant n I m paying my sister’s college fees as my father is no more my sister is totally dependant on me…
So, can I claim for my sister’s education fees…
Dear sir , i want to know about college fee can i claimed under sec 80 c ?
Can grand praents can claim deduction for payments of school fee for grand son/dughter u/s 80c ?
My daughter is 19 years old and she has a taxable income. I paid his school/college fees regularly and claim Tution fees u/s 80C regularly. But last year , I paid her fees of Rs. 50000/- by D/D from her savings account, although I transferred half the amount of fees in her account from my savings account and half amount of the fees was deposited in cash in her account by me. Can I claim deduction of Tution fees u/s 80 C. If yes, whole amount of Rs. 50000/- or half amount i.e. Rs. 25000/- . Please guide .
I am working as an accountant in a Govt. office. I want to know if tution fee is being claimed for last financial year along with the current then whether it will be taken for rebate or not if it is being taken for income. Can a person get rebate more than 2400 in a financial year?
can grand parents can claim deduction for payment of school fees for grand son/duaghter u/s 80c ?
can grand parents can claim deduction for payment of school fees for grand duaghter u/s 80c ?
Sir,i pay my younger brother fee who is in class 12th.
Is i am eligible under deduction 80c.
My father is not alive . My mother is not employed . My sister is studying in 11 th standard and both are my dependent and there is no income source except me as I am working as software engg 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 n regards education-of-children.html#sthas
whether children education allowance is reimburseable in arrears due to enhancement of school fees from 4/2013 to 3/2015 by central schools.
Sir Good day,
I am paying for my 2 girl children School Fees
Pr-schools one for Rs. 28500 and another Rs.25500 in a private school Totally
Out of those, I don;t know exactly how much for tuition fees.
Will I able to claim total amount I paid for school fees. or I need to get exact figure of tuition fees from School.
Please advise regarding the above.
Thank you
Dear Sir,
Im a central govt employee and my 2 chindren study for class 4 nad 7 in a private private school in meijrao manipur.. so can i reimburse her fees boarding fees ? –
Sir iam spending money for education of my uncle’s childerns can i deducted such a money as deductions??
My son taken admission in MBA two year distance education ICFAI university sikkim. Can I get incomtax exemption on tution fees Rs.66000.00 shown in receipt
im a central govt employee and my daughter is an engineering student in a private self financing college. can i reimburse her fees?
Hello,
Its very helpful website. Can you please help me to get tax benefit for my dependent brother’ college fee of Rs. 25000. I have the receipt of his college fee paymnet.
May I claim the dependent brother’s college fee?
Any help will be appreciable.
Thanks,
rahul
My Son Learns Tennis and Chess, fees for which amounts to 26000 annually. Is it possible to claim it ? Its not full time though.
Hello,
Can you please help me to get tax benefit for my dependent Sister college fee of Rs. 40,000. I am paying the fee from my bank account cheque.
May I claim the dependent Sister’s college fee?
Any help will be appreciable.
Thanks,
Pankaj Sharma
Hello,
Its very helpful website. Can you please help me to get tax benefit for my dependent brother’ college fee of Rs. 40,000. I am paying the fee from my bank account cheque.
May I claim the dependent brother’s college fee?
Any help will be appreciable.
Thanks,
Jatin
Sir/Madam
Can I claim deduction u/s 80c for Tuition Fee paid to my working daughter’s education.
Pls reply
Pls tell Me repeater eduction tuition fees are benefit Income tax (under 80c)
I am a 22 year old hotel management student at a private institute (I am already a B.Sc. Microbiology grad.). My father paid Rs. 1,46,000 as tuition fees (per year). Will he be eligible for tax exemption under Section 80C.
Awaiting reply.
Thanks in advance.
Hi,
I have sponsored a child’s tuition fees.
Can i claim the same under 80 c, currently am single.
Is admission fee eligible for tax rebate under 80C
Is ‘HALF YEARLY’ fee is eligible u/s 80 c alongwith tuition fees?
Pls reply
#9818397538
Education Fees paid for education in USA (Foreign / outside India)is applicable for exemption under 80c or not
80C deduction include cost of Books & Exercise Books or not.
Vidhya Vikas Nidhi paid in Kendriya Vidyalaya Schools. My question is whether the above amount is debatable under 80 cc for income tax or not? –
My kid is 8 months old.Can I apply for education allowance of 1500 rs.
can i take the benefit of my sister’s tution fee because i am her guardian & paying the tution fees.
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
8.visiting feculty fees
9. tutiorial fees
10. p.t.a. fees
13. entrence fees
14. semester fees
15. laboratary fees
16. extra/others fees
above are all kind of fees among of those which fees should be claim ?
School fees paid in cash is eligible for deduction??
is original tuition fee bill required for tax exemption on tuition fee?
Can we produce Dance institution fee slips also in the Educational deduction ?
ca course fee structure including coaching fees, classes and tuition fees…..per year and the total fee requied for CA course during the five years
Fees paid to private Institution for Vocational Full time courses. Air Hostess Training Institute can be considered for Deduction Under 80C.
sir can i get deduction if i paid tution fees for threee children Rs 75000 in a year .