Clarifications on Tuition / School Fees u/s. 80C


Maximum Child:

Deduction under this section is available for tuition fees paid on two children’s education. If Assesses have more than 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 assesses cannot claim tax benefit for expenditure incurred for self. In other words if assesses 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:

Deduction for tuition Fees is available up to Rs. 150000


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 9/2008 & 8/2007).


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.

 FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C

Q. 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 subsection 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. 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. 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. 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. 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. 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. 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 any two children of individual. It follows therefore one cannot claim deduction for payment of tuition fee for his/her spouse.

Q. Can Mother Claim the benefit of tuition fees paid for his son/daughter.

Answer: Assesses means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.

Q. 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. If a Couple has one child and paid a fee 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.

 

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