The cost of educating our children is rising consistently. It’s a matter of concern for all of us. One relief is the tax benefit provided for spending on children’s education. The Income Tax Act provides a direct deduction on account of fees paid for the education of dependent children. The act also provides for deduction on account of interest on loans taken for higher education of children.
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A. Deduction Under Section 80C on Tuition Fees Paid
This deduction in respect of school fees is covered under Section 80C of the I-T Act. A parent can claim a deduction of payment made for tuition fee to any university, college, school or any other educational institution.
The deduction on payments made towards tuition fee can be claimed up to Rs 150,000 (Rs. 1,00,000/- upto A.Y. 2014-15), together with deduction in respect of insurance, provident fund and pension.
But, there are certain conditions to get this. It can only be claimed in respect of two dependent children and for fees to an educational institution within India and, for tuition fee only. Payment as donation or development fee to an educational institution does not qualify.
Type of Fees allowed for deduction Section 80C as tuition fees
- Fees paid to regular educational institution irrespective of the class attended by the child.
- Payment of fees to play schools or creches will be allowed as deduction.
- Fees for admission are excluded from amounts eligible for deduction.
- The deduction is allowed only for two children.
- Deduction is available of paid basis.
- Adopted Child’s tuition fees is also eligible for deduction
Type of Fees not allowed for deduction Section 80C as tuition fees
- Deduction is not allowed for private tuition, coaching center.
- University College School or other educational institution must be situated in India. It can be affiliate to any foreign university.
- A late fee is not eligible for deduction.
- Development fees or donation is not eligible.
- Payment of fees for overseas education is not allowed.
- Fees for admission are excluded from amounts eligible for deduction.
- Transport charges, hostel charges, Mess charges, library fees charges incurred for education are not allowed
- Spouse’s tuition fees is not allowed for deduction.
B. Deduction Under Section 80E on Interest paid on Education loan
You can also get the benefit of direct deduction on the interest paid for a loan taken for the purpose of higher education. This is available under Section 80E of the I-T Act. This benefit can be claimed for a loan taken for education of yourself, your spouse, your children and the child for whom you are a legal guardian. It can be claimed for eight years in a row, beginning from the year when the interest payment starts.
As the benefit can be claimed by the parent as well as the child, the person taking the education can start claiming this deduction once he starts earning and paying the interest himself. There is no cap on the amount up to which the deduction can be claimed.
The loan in this regard can be taken from any financial Institution or charitable institution recognised by the central government. It can be claimed on a loan taken for education anywhere in the world.
Things to Keep in mind while availing Deduction Under Section 80E on Interest paid on Education loan
1-These deduction is available only to individual and not for H.U.F.
2-Deduction amount-The deduction amount is only the interest paid on the loan of higher studies and there is no limit. You can get tax benefit on entire amount of interest paid but not the PRINCIPAL.
3-Deduction only will be available if interest is paid out of tax chargeable income.
4-Deduction only be available if the loan is taken from financial institutes or approved charitable institutes. Loan taken by family or relatives not included.
5-Loan should be taken for higher studies means any full time course of graduate or post graduate course. After +2 full time course would be eligible for it.
6-Deduction available only to self or dependent like spouse & children. From A.Y 2010-11 Relative also includes student for whom the individual is the legal guardian
7. Deduction period: – Deduction shall be allowed in computing the total income in respect of the initial assessment year* and seven assessment years immediately succeeding the initial assessment year or until the interest is paid by the assessee in full, whichever is earlier.The maximum tenure to get the tax benefit is 8 years.
8-The study can be anywhere in the world and not necessary to be in India.
(Republished with amendments)
I want to taken education loan for both of my child ie two education loan for two child ,can I claim exemption of income tax under sec 80 F on interest paid for both the loans
Vidyalaya Vikas nidhi comes under which section 80 C oraanother section pls give response
Sir,
My son is studying for MBBS, can i get income tax relief. In his fee receipt it is written “fees” and not “tuition fees”. Kindly suggest
Thanks
Please tell me if I Am paying tuition fees for my third child can I use these for tax saving
Mr A ,is the borrower. Mrs. B ,mother of A is the coborrower.Mr. C father of A is repaying the loan. Will Mr. C get benefit of 80E?
let me know about children’s fees paid to private computer institutes and tuition center is exempted or taxable.
Sir
My Child in 5th STD Can I Relief Smart School Fees U/s 80-C or not
Sir
After 12th Standard my Brother going to UKRAINE for further study of MBBS shall i got incomtax relief
Instead of mentioning Tution fee I have mentioned as school fee. So they have rejected the amount with the comments “Only tuition fee paid is allowed. & Tuition fee not mentioned” . Please let me know how to get refund
sir, my father and mother have expired. i am now paying fee for my younger sister age 22 and unmarried. can i get rebate / any deduction under 80c
Sir i want to know how much maximum tution fee can i deduct of my two children. Ihave listened the we cant deduct more than 24000.is it right.
pls inform whether smart class fees, computer fees, science class fees are consider under tution fees or not
Hello Tax Guru,
How do above mentioned sections apply for following?
1) Fees paid for professional training like SAP training and certification directly from SAP.
2) Loan taken to pay training and certification fee for above mentioned SAP training and certification.
Your guidance will be appreciated on this.
Regards
Vijay
I am taking tuition fees reimbursement of Rs.36000/- pa for two children from my employer in financial year 2014-15.The tution fees for the financial year 2015-16. is not paid by by this financial year.can I take Rebate on 80c.
Is it possible. Please help.
Sir,
HOW EXEMPTION U/S 80E CAN BE AVAILED IN CASE OF EDUCATION LOAN TAKEN FROM BANK JOINTLY BY THE CHILD & THE PARENT? CAN THE EXEMPTION BE AVAILED BY EITHER OF THE TWO BORROWERS? THE REPAYMENTS TO BANK ARE MADE FROM ACCOUNT JOINTLY HELD BY THE BORROWERS.
Hi
I am taking tuition fees reimbursement of Rs.36000/- pa for two children from my employer. Is it compulsory for me to take the benefit of tuition fee deductions in Section 80C.
Can my wife take the benefit of tuition fee deduction benefit in Sec 80-C from her employer. If she is not claiming tuition fee reimbursement from her employer. But only want to claim tuition fees paid deductions for tax purposes only.
Is it possible. Please help.
regards
Rupesh
Will school fee paid by grand father for 2 grand son qualify for 80c
my company is not accepting my 2 child’s education fees to claim tax rebate u/s 80C & they have deducted the tax, can I claim the refund for the same at the time of filling ITR? I have their school fees receipts with me.
Sir, i am doing various courses in merchant navy. It is full time course. But course duration in of 1 or 2 weeks. Is this fee recipt are exempted from income tax?
We paid our only child fees from our joint account, Can we both claim deduction under 80c for part amount each. For example. we paid Rs. 96000, so can my wife claim 26000 and I claim 70000.
regards
Rohit Singh
Does interest paid on Educational loan for executive MBA qualify for 80E interest?
MBA is done outside India.Loan is from India.
does interest paid on educational loan for executive MBA qualify for 80E interest?
It is done outside India.
how much max amt can be counted under school fees can get rebate
Sir, i want to know that i reimbrush 18000 ofcild education and i paid 24000 . i can claimed 24000 under section 80c
Sir,
Is examination fees allowance for dedcion under section 80 c
school admission/re-admission fee will be tax benefit or not
Sir my spouse continuing regular B ED education. Can I take benefit of tuition fee for me
Mr Giri
Does Higher Education In Outside Is come under the definition of ‘higher education ‘ u/s 80E ?
My son is studing for pailot.Is flying fee elegibel for tex relife or not?
Sir,
My children are studying in KVS. I paid vvn( Vidyalaya Vikas Nidhi) fund and computer fund as there is no tuition fee. I got reimbursement for these under CEA. Can I include these vvn fund and computer fund for exemption under the head in Income Tax act section 80c (limit of Rs.1,50,000/-). Please clarify.
I want to know whether single women can be claim our brother education tution fees.
If both the parents have paid tution fees for their child from their joint account can both claim tax benefit of 50% on tution fees?What is the procedure for claiming this benefit?
Request intimate that Tuition fee is under saving scheme or exemption
Sir
I am government of gujarat employee. After 12th Standard my son going to phillipines for further study of MBBS shall i got incomtax relief???
Sir,
My wife(as a dependent) college fees can save my tax.it’s come under 80c or not?