Education Fee and Taxation
Education is a fundamental right of every individual in the country and as the development is taking place so rapidly there is always a requirement of skills, good knowledge and efficient individuals which is only possible if majority are literate. But the critical part is the fees or the amount which needs paid for gaining that education, specially Higher education which is extremely expensive nowadays. Every year there is a hike in education/tuition fees in the schools, colleges, education institutions etc that is a matter of concern for all the parents and students who cannot afford such exorbitant knowledge.
Although Government has taken some initiatives and measures to tackle this problem at some extent that might be a relief for the people.
In this article I will discuss the taxation measures on Education Fees. Is there any benefit from Tax in Tuition Fees ? If yes then Who can avail the benefits ? What are the criteria ? and all of that in brief.
Tuition Fee/Education Fee .
Income Tax Act defines Section- 80C as Deduction in respect of certain payments.
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,-
Tuition fee is the charge or fee paid for instruction or teaching , as at a private school or a college or university. Certain deductions are allowed in Income Tax for the payment of Fees which can be availed by the tax payers towards education his/her children.
Criteria of Tax Exemption.
Who can avail the benefits ?
Limit for Tax benefit.
The tax benefits comes with certain Limitations which needs to be taken care of by the Tax payers while claiming the deductions.
If two salaried individuals pays tuition fees of Rs. 50,000 and Rs 1.5 Lakh respectively towards educating two children which comes upto Rs. 2 Lakh combined. Then both of them can avail the tax benefit separately as per the amount paid by them.
– Swati Srivastava, Advocate