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Education tax paid for self edu. - can it be taken in itr?

Rishu Gupta (Others) (38 Points)

29 December 2015

Hi All,

I am 28 yrs IT Engineer and have paid Rs.6,00,000.00 for my higher education + Rs. 84,000.00 as TAX.

Q: Can I claim this Rs. 84,000.00 in ITR(AY 2016-2017)? If Yes, then please let me know underwhat section? If No, then I have heard this can be done, if I show it as a consultation fee<<I don't know under which this section comes>>

Please guide.

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7 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 29 December 2015

What kind of tax have you paid? However, you can claim interest paid on education loan u/s 80E

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Rishu Gupta (Others) (38 Points)
Replied 29 December 2015

Hi Poornima,

Thanks for response. Well my college has taken Rs. 84,000.00/- (i.e. 14% of Rs.6,00,000.00 actual tution fee) and shared me the reciept along with the TAX certificate with details as below:

Central Board Of Excise and customs, Min Of Fin, FORM ST-2. college is comply with the conditions prescribed in Chapter V of the Finance Act,1994 read with the Service Tax Rules,1994,and any orders issued thereunder is hereby certified to have been registered with the Central Excise Department.

Nature of registration : Registration of a single premise

Taxable services : MANAGEMENT CONSULTANTS, ARCHITECTS SERVICES, BUSINESS SUPPORT SERVICES, RENTING OF IMMOVABLE ROPERTY SERVICES, COMMERCIAL TRAINING & COACHING.

Let me know, if there is a way to take this in ITR. I am not sure this will be Direct TAX or indirect TAX, also?

Thanks for letting me know for interest 80E, but I need info on the above TAX paid :)

CMA Poornima Madhava (CMA) (13112 Points)
Replied 29 December 2015

That should be service tax @ 14% on tuition fees. U can claim deduction of tuition fees (including tax) u/s 80C up to Rs.1,50,000 only

Rishu Gupta (Others) (38 Points)
Replied 29 December 2015

Hi Poornima,

I have read many documents for 80C but I don't find anywhere written that this "service tax @ 14% ie. Rs. 84,000.00/- " can be claimed in 80C.

Please can you give me some reference or URL where it's writtern.

Rishu

CMA Poornima Madhava (CMA) (13112 Points)
Replied 29 December 2015

Since service tax is paid on tuition fees, it is definitely part of tuition fee unless you claim credit of such tax against any service tax liability. I am sure, you might not claim such credit in this case.
However, since the limit of 80C is only 1.5 lacs, you can only claim 1.5 lacs (out of 6.84 lacs). Hence, whether ST can be claimed or not, may not be relevant in this case.