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 Act1961 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 80 C where assessee cannot 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. 
Please Note that aggregate amount of deduction  under section 80C , 80CCC
and  80CCD shall not  exceed Rs. 1,00,000/-
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 2009 if Paid in March 2009 will
be eligible for deduction u/s. 80C in A.Y. 2009-10.
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
 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
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
3. Late fees is not eligible for deduction.
Term Fees is not eligible for deduction.
No deduction for part time or distance learning courses.
no rebate for private tuition.
Building fund or any donation etc not allowed.
Note: Above list is not
Summary of Above
1) Deduction from taxable income under Section 80C is
available to individual taxpayers up to a maximum amount of Rs1 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 thetuition fee actually paid or Rs1 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.
Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school
feepaid 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.
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.
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.
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.
I and my wife both paid for education of our one child. My wife
paid 70,000 and I paid 1,10,000/- can we both claim deduction?
Answer: Yes both of you can
claim deduction u/s 80C up to a maximum of Rs.  1,00,000 each.  You
can claim deduction up to 100000/- and your wife can claim deduction of Rs.
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.
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 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.
Section 80C allows deduction in respect of
 tuition fee but excludes payments
towards development fees, donations or payments of similar nature.
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.
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.
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.
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.
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.
If a Couple has one child and paid a fees of 200000 rs can they both claim
tuition fess 100000 each ?
Answer:  yes ,they
both can claim deduction for 100000 each subject to they have actually paid
same amount .If husband has paid 1.50lac and wife has paid 50000 then husband
can claim 100000 and wife can claim 50000.
Question:-  Ram has paid tuition
fees for his child 2000/- in February 2011  relates to period march to
June 2011 ,how much amount he can claim deduction in assessment year 2012-03?
can claim full 2000 Rs in assessment year 2012-13 , 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.
Is Late fees paid with tuition fees is eligible for deduction ?
Answer:   No,late fees
is not eligible for deduction.
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.
Note- (Republished with Amendments)

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