Deduction u/s. 80C for tuition / school fees paid for education
of children
Who is Eligible: 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: Deduction for tuition Fees is available up to Rs. 100000
(Rs. 1.50 Lakh from A.Y. 2015-16). Please Note that aggregate amount of
deduction under section 80C , 80CCC and 80CCD shall not
exceed Rs. 1,00,000/- (Rs. 1.50 Lakh from A.Y. 2015-16).
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 2016 if Paid in March 2016 will be eligible for
deduction u/s. 80C in A.Y. 2016-17.
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.
Sachin Kumar Mishra
sachinlegaladvisor@gmail.com
