Income tax benefit for section 80C for tuition / school / education fees

Deduction u/s. 80C for tuition / school fees paid for education of children

  1. Eligibility Criteria: Deduction for tuition fees u/s. 80C of the Income Tax Act 1961 is available to Individual Assesse and is not available to Hindu Undivided Family.
  2. Maximum number of Child: Deduction under this section 80C is available for tuition fees paid on two children’s education. If Assesse have more than two children then he can claim tuition fees paid of only 2 children’s. The Deduction is available for any 2 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.
  3. Expenditure paid for self-education is not allowable: This is the only clause under section 80C where assesse cannot claim tax benefit for expenditure incurred for itself. In other words if assesse has paid tuition fees for his own studies, he will not be eligible for this deduction.
  4. Fees paid for spouse:Deduction is not available for tuition fees paid for studies of spouse.
  5. 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).
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. Allow ability 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.
  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.

Note: Above list is not exhaustive.

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