Sumiti Jain (FP) (1364 Points)
23 August 2012If a person is student and getting his stipend and also with this pays his Tution fees of the regular course. Is he eligible for the deduction of his own tution fees u/s 80C in his ITR. His parents are not taking this deduction in their respective returns. Person is himself paying the fees from his own Bank a/c.
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 23 August 2012
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 Act 1961 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 feespaid 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 claimdeduction for 2 children each.
Expenditure paid for self education not allowable: - This is the only clause u/s 80 C where assessee can not 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 ofdeduction 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 fordeduction 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 educational institution: 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 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.
Abhishek Agrawal
(PROPRIETOR)
(76 Points)
Replied 23 August 2012
No, as provision of sec80c strictly says tuition / school fees paid for education of children of Assessee only. So Person is himself paying the fees not allowed u/s 80c.
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