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
A person is having three children.Last two children are twins. Can he claim tution fee paid to all three children for the benefit of income Tax deduction.Please reply.
I paid tution fee for my brother.is it come under section 80C for deduction.my father is also depend on me.
I paid tution fee for my brother(I am legal guardian).Is I take tax benefit or not?
I am a govt employee and want avail the deduction under 80C towards tuition fees of child studying in UKG, but the employer/office is not accepting by saying that it can only be allowed if you have submitted the Children Education Allowance bill for that particular period and received the reimbursement of CEA from department. Hence, I need any authenticate clarification/Answer, So that I can show/submit for getting exemption.
My wife is doing Bachelor degree in education. She is dependent on me and I am latitude course fees. Can I avail the tax exemption on her course fees. As I got to know from your post that it can be upto a maximum of 100000.
Hi,
Can we claim child daycare expenses under Sec.80 or is any ?
I am paying education fee for poor children who cant afford for education. Shall I show that for my IT exemption. If so in which head
Can HUF claim Deduction of School Fees ??
I am staying in a hostel. Can I claim for my hostel fee or submit it as Proof., if so which section it comes under ? Plz reply me
can i claim deduction tuition fee for abroad study
Sir,
Is tuition fee paid to parallel college for degree course eligible for deduction under 80 C?
OK
DEAR SIR,
IN A.Y.2013-14 I HAVE NOT TAKEN DEDUCTION U/S 80C WHAT WILL I DO NOW?CAN I CLAIM NOW?
I have paid tution fee for my son Rs. 70000/- for BE 1st year studying in a private college(Govt regonized).
Am I eligible to claim under sec 80C for the amount.
Kindly let me know if tuition fees paid abroad can be claimed Under sec 80 C / CCA etc….
the information seems outdated, AY 2016-17 is given as latest, whereas we are looking for AY 2018-19!!
please give updated limits and rules..
I strongly believe that term fee is eligible for deduction. please reconsider opinion expressed by you in this regard.
If I have no children and I am paying school fees of sisters or brothers children (due to my sisters / brothers bad financial condition). Can I claim deduction u/s. 80C on this payment?
MY SON AVILED EDUCATION LOAN AND PAID COLLEGE TUTION FEES CAN I CLAIM DEDUCTION U/S 80C ?
Can a Grandparent claim Tuition Fee U/S 80C deduction for a grandchild if his/her parents are still there?
If I paid tuition fee rs 13000 For AY 2016-17 (FY 2015-16) for my daughter. Then is it fully allowed as deduction ? and paid rs 12000 For sukanya samriddhi yojana for The same AY Is It Also Allowed??? Please Help sir….Thanks
I want to know that my wife is housewife and has only one source of income of interest on fdr and I transferred the amount in her account for paying tution fees of my children and then fees paid in her account . Can I claim the deduction in my ITR
Hi, i have following query, please reply.
I do not have my own child/children, but I voluntarily sponsor a kid’s education whose family is financially weak. I have the bills/receipts of fee payments. Can i claim this under tuition fees?
Can i claim for dance and Abacus fees for my child and
Sir my daughter studying in B-Tech and taking admission through NRI sponsored . Can I avail benefit under 80c . Please suggest
Does Admission fees comes under tuition fees?
I have an query :-
If aggreed fees have given, including all these
Tution Fees :- 8000
Term Fees :- 1300
Library Fees :- 400
Examination Fees :-1050
Gymkhana fees :- 500
Laboratory fees :- 500
TOTAL :- 11750
So, now how Much amount of deduction we can claim .
I have pay Rs. 1.50 lakh for tution fees in my child by cash, Can i deduction claim U/S 80C full amount ?
We are railway employees and our accountant section often says you can take any one benefit either children education allowance or tution fee rebate.What is the rule?
Can I claim deduction under section 80C for Computer fees, exam fees paid with tuition fee.
Sir,
Can you clarify that,
U/s 80C, In Tuition Fees column,
Can I taken into account
Tuition Fees plus
Special Fees paid for the institution.
My Son is studying Engg college and they are collecting
Tution Fees Plus Special fees (Excluding Technical, Development,
Sports and Association Fee).
children education allowance not claimed in this year but if rebate of tution fee.
In absence of father when a elder brother is paying fees for his younger brother education, is there exemption in such case?
well, highly informative, and would like to ask one question, in case of multiple children in second issue whether the IT rebate is for 3 children on restricted to two children?
Thanks Sir for such a informative article
Hi. I am a salaried person and paying Tution fees(University/College fees + Private course fees) of my younger brother. Can I claim his tution fees under section 80C.
My Son Studying in M.Sc.. Can I claim under 80c
Hi sir
My Son have study last year B.com . I have paid Rs 25000/- fees for full year.. College Receipt mention that College fees. but my company have disallowed for 2016-17 IT proof declaration reason Tution Fees not metion on Receipt
kindly suggest
Thanks
Mayur
Dear Sir/Madam,
i had paid tution fees of one children Rs 36000/- ( Rs 12000 per quarter) in FY 2016-17. The school authorities are providing me receipt of Rs 14400 only. The justification was 40% were the amount deduction our tax by them.
Please guide me
Please confirm whether YEARLY SPECIAL FEE, PROFESSIONAL DEVELOPMENT FEE & UNIVERSITY FEE included in College Fee Receipt (TUITION FEE shown separately) are eligible for deduction.
Sir,
Please tell me the amount paid as admission fee shall be considered under 80 C section or only the tution fee will be considered.
COMPUTER LITERACY CHARGES RECEIVED BY COLLEGE FOR MY DAUGHTER IS IT EXEMPTED UNDER INCOME TAX ACT PLEASE HELP ME AS SOON AS POSSIBLE
Is section 80c and 80d covered the same amount @ Rs. 150000/- or both section has separate amount.
MY SON 19 YRS OLD. HE EARNS BY TUTION, AS BECAUSE HE FILLING RETURN THROUGH THE E-FILLING . HE DOING THE B TECH COURSE, AM I ELIGIBLE IN 80C FOR HIS TUTION FEES.
Whether the handicapped employees of central government can be treated as tax exempted under section 80U based on the disability percentage mention in the certificate pasted in Service Register?
I took admission of my daughter for jr.k.g. in school in June, 2016 and paid School fees for 6 months then I cancelled the admission in Nov.2016. Then I took her admission in Sr.K.G. in another school in Nov.2016 and paid full fees.
Both the Fees are eligible altogether for educaion cess under 80 C, please guide
education fee all redy we are pay not saving so way section 80c
I paid my sister tution fees, i have no father and my mother is house wife i m only a earning source, can i take tuttion fee deduction in income tax.
i paid my sister annual tuition fee 65k INR, can i show it under 80c ?
can i get rebate on tuition fee paid for my daughter-in-law by me