Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Tuition Fee

Pravesh Kumar (Still Learning) (163 Points)

10 April 2010

Dear Freinds.

please tell me whether a father can claim tuition fee paid for his son for higher study also within 80C deduction.

Thanks

Pravesh

Reply
Follow
Share

16 Replies

Vivek Angrish (Manager Finance & Accounts) (232 Points)
Replied 10 April 2010

Yes, If a person has paid any sum towards tution fee to any University for full time study course for his son/daughter, he can claim deduction for that but limited only upto Rs.100/- per month per child for maximum upto two child.

Upgrade to CAclubindia Pro. Subscribe Now!

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 10 April 2010

Originally posted by : Vivek Angrish
	Yes, If a person has paid any sum towards tution fee to any University for full time study course for his son/daughter, he can claim deduction for that but limited only upto Rs.100/- per month per child for maximum upto two child.

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 fees paid 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 claim deduction 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 of deduction 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.

Note: Above list is not exhaustive.

FREQUENTLY ASKED QUESTIONS ON DEDUCTION FOR TUITION FEES U/S. 80C

Q. Can an unmarried person can claim deduction u/s 80C of Income tax Act, 1961 for school fee paid for 2 children?

Answer: Yes he can. As clause (c ) of subsection 4 of Section 80C only speaks of children’s of Individual. Section 80C is silent on legality of child and it does not say that child should be legal child.

Q. Can I claim deduction u/s 80C of Income tax Act, 1961 for my adopted child’s school fees?

Answer: Yes you can. As section 80C again silent and do not specify that child should be biological child for the purpose of claimingdeduction under clause (xvii) of section 80C.

Q. I have divorced to my wife and have custody of my son with me and paying his school fees. Will I be eligible for deduction u/s 80C of Income tax Act, 1961 for school fee paid on his education?

Answer: Yes you will. As section 80C do not specify that marriage should continue to claim the deduction under clause (xvii) of section 80C.

Q. Can I claim deduction under section 80C for tuition fees paid to an Indian institution for my wife’s education?

Answer: No you can’t claim. Deduction u/s. 80C is available only for tuition fees paid for two children’s education.

Q. I and my wife both paid for education of our one child. My wife paid 70,000 and I paid 1,10,000/- can we both claim deduction?

Answer: Yes both of you can claim deduction u/s 80C up to a maximum of Rs. 1,00,000 each. You can claim deduction up to 100000/- and your wife can claim deduction of Rs. 70,000/-.

Q. I am currently working and studying. If I pay my tuition fees out my own earnings and do not take an educational loan, will I get any tax benefits?

Answer: The tuition fees paid by you will not make you eligible for any tax benefits. You will not be able to claim any income tax deduction.

Q. I am a working women and I am paying the education fees for my husband education. Can I claim the deduction for this?

Answer: Payment of tuition fee up to Rs 1 lakh can be claimed as deduction u/s 80C of the I T Act. But the payment of tuition fee for full time course must be for for any two children of individual. It follows therefore one can not claim deduction for payment of tuition fee for his/her spouse.

Question:- Section 80C allows deduction in respect of tuition fee but excludes payments towards development fees, donations or payments of similar nature.

Does this mean that the items not specifically excluded, such as fees for games, magazines, stationery, Parents’ Teacher Association fees, Staff Benefit Fund, Gratuity Fund, and hostel will not qualify for thededuction?

Answer:- None of these will qualify for deduction under Section 80C of the Income-Tax Act, 1961.

The deduction available under this Section is for sums paid as tuition fees (excluding any payment towards any development fees or donation or payment of a similar nature) whether at the time of admission or thereafter to any university, college, school or other educational institutions within India for the purpose of full-time education of any two children of anindividual. The principle requirement for qualifying for deduction under this provision would be that the fee paid should be in the nature of tuition fee. All of the items enumerated by you are essentially not in the nature of tuition fee, and so cannot qualify fordeduction.

You may note that the development fee or donation or payments of a similar nature even if they are in the nature of tuition fees will not qualify for the deduction under this Section.

EXTRACT OF SECTION 80C

Clause xvii of section 80C

xvii) 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);

Subsection 4 of Section 80C

“(4) The persons referred to in sub-section (2) shall be the following, namely:

(a) ………………….
(b) …………………..

(c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual.

So deduction upto Rs. 100000/- can be claimed as tuition fees.

regards,

ratan

Pravesh Kumar (Still Learning) (163 Points)
Replied 10 April 2010

bhai mere itna bada section paste kar diya yahan par.

I just wanted to know weather a father can claim tuition fee paid for his son for higher study under 1 Lakh limit of 80C.

Just answer in simple language.....

Thanks

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 10 April 2010

Originally posted by : Pravesh Kumar
	bhai mere itna bada section paste kar diya yahan par. I just wanted to know weather a father can claim tuition fee paid for his son for higher study under 1 Lakh limit of 80C. Just answer in simple language..... Thanks P

yes father cn claim.

the reason behind posting the section to equipp with the section.

anyways,

keep smiling....

ratan

1 Like

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 10 April 2010

yes, he can claim deduction that's also upto Rs. 1 lakh u/s 80C...........

Upgrade to CAclubindia Pro. Subscribe Now!

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 10 April 2010

i think vivek just misunderstood it............ he is quoting the relevant provisions of Children Education Allowance........ on which father (being employed) can claim deduction (if he received CEA from Employer)........ that's upto Rs. 100/- per child per month..........

Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
Replied 10 April 2010

I agree with Mr. Arora, CEA is allowed 100/- PM for two chiledren u/s 10_ _ (Correct me if wrong) i.e. max. 200/- pm.

Reg. Tution fees paid for Higher education for chileden, upto 1 lakh is allowed u/s 80C

Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 10 April 2010

You can Claim upto one lack under 80c deduction as tution fee, There is no limit for tution fee under 80c.

SUDHIR & PRADEEP JI (CA FINAL+LLB + DISA) (2299 Points)
Replied 10 April 2010

yes, by the way gud reply by ratan

CA Babit Khurana (learning is my passion) (338 Points)
Replied 11 April 2010

Very nice reply by Mr ratan, thanks for clearing section 80C(xvii). I will be very thankfull to you.

Upgrade to CAclubindia Pro. Subscribe Now!

Hareesh H Sharma (Cleared IPCC..now article) (894 Points)
Replied 11 April 2010

U can claim it Pravesh subject to the conditions said in the section posted...since u said its tuition fees, then u can claim it...and Vivek sir misunderstood it for sec 10(14)