Deduction U/s 80C

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 April 2011 ABC School run under management of ABC Sikshan Parishad .The school use two type of fees receipt book :-
1.ABC School Fees Receipt Book
2.ABC Sikshan Parisha Receipt Book
When parent approach to school to deposit fees the school staff issue receipt out of two receipt book in following manner:-
R.NO Head of Fees Amount Receipt books used
1 Development fees 5000 ABC School Fees Receipt Book
2. Tuition Fees 10000 ABC School Fees Receipt Book
1. Sikshan SulK(Tutorial Fees) 10000 ABC Sikshan Parisha Receipt Book
My query are as under:-
1.whether fees collect as sikshan Sulk(tutorial Fees) Rs.10000/- on receipt book of sishan parishad is allow u/s 80 C
2.Total Amount of Deduction u/s 80 C

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
Follow

18 April 2011 Any payment which is covered under the description of Tuition Fees, will only be covered under section 80C.

So... any kind of receipt is ok. The payment description should be very clear....Tuition Fees. Then only it will be covered under 80C.

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2011 Thanks, but My query are as under:-
1.whether fees collect as sikshan Sulk(tutorial Fees) Rs. 10000/- on receipt book of sishan parishad is allow u/s 80 C
2.Total Amount of Deduction u/s 80 C

Upgrade to CAclubindia Pro. Subscribe Now!

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
Follow

20 July 2024 Let's address your queries one by one:

1. **Whether fees collected as Sikshan Sulk (tutorial fees) Rs. 10,000/- on receipt book of Sikshan Parishad is allowed u/s 80C:**

Section 80C of the Income Tax Act, 1961 allows deductions from gross total income for specified investments and payments. The key payments eligible for deduction under Section 80C include:

- Tuition fees paid to any university, college, school or other educational institution situated in India for the purpose of full-time education of any two children of the individual.
- Payments towards life insurance premium.
- Payments towards principal repayment of home loan.
- Investments in specified savings instruments like PPF, NSC, tax-saving FDs, etc.

Based on the description provided, "Sikshan Sulk" appears to be tutorial fees paid to a Sikshan Parishad (educational institution). For such fees to qualify for deduction under Section 80C:

- The fees should be paid to an educational institution that is recognized by law.
- The payment should be for the purpose of full-time education of your children.

Since tutorial fees paid to an educational institution for the education of children generally qualifies for deduction under Section 80C, the fees you mentioned (Rs. 10,000/-) should be eligible, provided it meets the above criteria. However, it's crucial to ensure that the institution where the fees are paid meets the criteria under Section 80C.

2. **Total amount of deduction u/s 80C:**

The maximum deduction allowed under Section 80C is Rs. 1.5 lakh per financial year (FY). This deduction limit is applicable per individual taxpayer, and it encompasses various eligible payments and investments as mentioned earlier.

Therefore, irrespective of the number of eligible payments or investments made under Section 80C (like tuition fees, life insurance premiums, PPF contributions, etc.), the total deduction cannot exceed Rs. 1.5 lakh in a FY.

It's important to note that the deduction under Section 80C is part of the overall basket of deductions available under Chapter VI-A of the Income Tax Act, which includes other sections like 80D, 80E, 80G, etc. Taxpayers should assess their total eligible deductions carefully to optimize their tax planning effectively.

In summary, tutorial fees paid to an educational institution like the Sikshan Parishad for the education of children are likely eligible for deduction under Section 80C, subject to the maximum limit of Rs. 1.5 lakh per FY for all eligible payments and investments combined.