23 April 2009
what is the meaning of tution fee in income tax act, can we taken computer fee/library fee/term fee/laboratory fee/examination fee also for considering the tution fee.
23 April 2009
Section 80C of the I T Act does not provide the definition of tuition fee , however there is express provision what can not be allowed in the name of tuition Fee. The Section 80C (xvii) states “ “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);“ Therefore the provision clearly prohibit allowance of tuition fee in the name of : Development Fees Donation or payment of similar nature
In my view the lawmakers have excluded within the ambit of definition of tuition fee ,any payment which is associated with the Development of school or college or institution .
Hence , all payments related to education of the child which a school or college imposes whether known as tuition fee or otherwise should be allowed u/s 80C. You should claim the expenses you have mentioned for 80C deduction for aforesaid reasons .
The term tuition fees has been defined in the section 80C (XVII) as following. (xvii) as tuition fees (excluding any paymenttowards any development fees or donation or payment of similarnature), whether at the time of admission or thereafter, (a) to any university, college, school or othereducational institution situated within India; (b) for the purpose of full-time education of any ofthe persons specified in sub-section (4); From the plain reading of the above definition it can be interpreted that the law intended to exclude payment in the nature of donations and development fund building funds etc. which do not have any direct nexus with the education of the person. Accordingly in my view, the nature of fees mentioned in your query except for “term fee” which I am not clear about the nature, should for part of “Tuition Fees”
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