In the light of government schemes, there is one propolling for children and education welfare. To promote the higher literacy rate and increase the literacy rate of India, there are a number of tax benefits which a person can use from. In the context of the same, Section-80C of the Income Tax Act, 1961 allows for deduction for expenditure incurred towards education of children by the assessee (a person by whom income-tax or any other sum of money is payable under this Act).
In simple language, Sec - 80C can help taxpayers save taxes on various investments and expenses. Under this section, one can claim for Income Tax deduction for tuition fees. Here in this article, we will discuss its benefits and answers to the most common related questions.
Tax Benefit on Tuition Fees Under Section 80C
Tax benefit under section 80C refers to the tax benefits on tuition fees, and school fees. Here are some mentioned.
- A parent can claim a deduction on the amount paid as tuition fees to a university, college, school or any other educational institution.
- The highest exemption amount against tuition fee can be claimed for up to Rs 1.5 lakh together with the deduction with respect to insurance, provident fund, pension etc. in a financial year.
Also note, no deduction is available for fees paid to private coaching institutes. [look the table for more information]
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Allowable as Tuition Fees |
Not Allowable as Tuition Fees |
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FAQs
Who is eligible for Tuition fee exemption under section 80C?
Sincerely, this deduction is available only to an assessee who is an individual.
What is the limit of children for claiming deduction for tuition fees?
Deduction under section-80C can be claimed by an individual for tuition fees paid for any of his/her 2 children. It doesn't matter whether the children are minor or major.
Can deduction be claimed for adopted children/step children?
The provision has clearly stated that it does not indulge that the children should have a biological child for claiming deduction under section-80C. Therefore, the taxpayer may claim deduction for tuition fees paid towards adopted/ step children also.
Can a person living in a live-in relationship and having children from such a relationship may claim deduction under section-80C towards tuition fees of such children?
A person living in a live-in relationship can claim deduction for tuition fees for children from such a relationship.
Is expenditure incurred on own education by the assessee allowable as deduction under section-80C?
No, the assessee cannot claim any deduction for expenditure incurred for his own education under section-80C.
Is expenditure incurred on education of a spouse allowable under section-80C?
No, the assessee cannot claim any deduction under section-80C for expenditure incurred on education of the spouse of the assessee.
Is deduction for tuition fees allowable on a due basis?
Speaks truly, deduction for tuition fees shall be allowed in the year in which the assessee pays the fees and not in the year to which such fees relate to.
Is tuition fees paid for education abroad eligible for deduction under section-80C?
No deduction is allowed for expenditure incurred on education of children abroad under section-80C.
Is deduction under section-80C available for part time courses in India?
No deduction is allowable for fees paid towards part time courses or distance learning courses.
What is the maximum quantum of deduction for tuition fees?
The Act has stated the prescribed limit of deduction for tuition fees which is only up to Rs. 1, 50,000.
Ramesh and his wife have one child. They both made payment for education of their child as Rs. 160,000 by Ramesh and Rs. 162,000 by his wife. Can they both claim deduction under section-80C?
Yes, both Ramesh and his wife can claim deduction of Rs. 150,000 each towards education expenditure incurred towards their child.
File Deduction Under Section 80C For AY 2020 21
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