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Tuition fees under section 80c

Ramanathan (Others) (31 Points)

02 March 2014

Dear Team,
Requesting your advice on the following case

Admission fees of Rs.3500/- (The school mentions it as "Advance Collection" in the cash receipt)
Term fees Rs.7595/- for first term, Rs.2375/- each for second and third terms (Have not paid yet but is it okay if the school mentions it as Term Fees only)

Since the school does not mention the nature of fees as Tuition or not, can i claim the following as deductions this year
Rs.3500 + Rs.7595 + Rs.2375 + Rs.2375
.
Also appreciate your thoughts if the fees paid to a school where my son discontinued also qualifies (despite me claiming the fees in the next school where he joined).

Regards,
Ram

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19 Replies

Shivani Mittal (Practice) (425 Points)
Replied 02 March 2014

Sec 80C limits the admissibility of tution fee for max 2 children. Hence, fee paid to the previous school can also be claimed. Admission fee of Rs. 3,500/- in no case is admissible u/s 80C. Regarding term fee, though only tution fee is admissible, but since you don't have the break up, in my opinion you should claim any amount less than or equal to Rs.(7595 + 2375 + 2375) as there is no other way to claim tution fee.

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Mihir (Wealth Manager) (5293 Points)
Replied 02 March 2014

Tuition fees for maximum 2 children upto Rs. 100,000/- is available as deduction from income u/s 80C. Tuition fees paid to school, colleges, university, education institution for full-time education is eligible.

The following is not eligible for deduction

donation, development fees, transport charges, hostel, mess charges, library charges, vehicle stand charges, term fees, late fees, etc.

However, there seems no difference between tuition fees and term fees paid to the school. Therefore, I think admission fees and term fees should be eligible for deduction.

Wait for more replies.

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Shivani Mittal (Practice) (425 Points)
Replied 02 March 2014

Mihir

In my opinion tution fee and term fee are different as the term fee includes tution fee.

Eg : Tuition fee 1365, Computer fee 200, Stationery fee 200 Cultural activities 150 Magazine and Journals 125 Library fee 100 Exam fee 100 Sports fee 100 Art education 100 Welfare fund 80 Medical exam 75 insurance 50. In this case Rs. 1365 is allowed as deduction u/s 80C and sum of all the above components will be coined as term fee.

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manoj (student) (5205 Points)
Replied 02 March 2014

IN GIVEN CASE IF NO WORDS OF TUITION FEES WORDS WRITTEN IN YOUR RECEIPT YOU CANT CLAIM ANY AMOUNT U/S 80C

Pradeep Gupta (Accounts Manager) (298 Points)
Replied 02 March 2014

I think that we can claim term fees as well as admission fees.

If we will go through the section 80C it excludes the following payment towards:-

Any development fees or

Donation or

Payment of similar nature

Therefore the intention of law is to discourage the payment which are in the nature of capital.

Also I would like to bring to your notice that a definiton can be either inclusive or exclusive.

So if we will elaborate the definition of "Tution Fees", we will reach at the conclusion that it is an exclusive definition, in other words it excludes certain things from the definition.

Finally we can conclude that apart from the abovecaptioned 3 payments, other payment should be included under the term "Tution Fees".

@ Ramanathan: Sec. 80C deduction is allowed on payment basis, so if you have paid the above fees in the financial year 2013-14, even if it relates to FY 2012-13, then you can claim it in FY 2013-14 otherwise it can't be allowed on accrual basis.

I have given few links which is infavour of the above conclusion:

https://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=1539

https://www.practicaltaxplanning.in/faqs

https://www.ahmedabadmirror.com/printarticle.aspx?page=comments&action=translate§id=35&contentid=201011162010111603073952933ac0017&subsite=

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(Guest)

Tution fee can only be claimed.... It should exclude admission fees n include term fees because it should be deemed to be tution fees...... Further if your son / sons (deduction should be claimed only 2 children ) Discontinue study then you are eligible to claim deduction upto time when your children were in school.....from when they ceases to study from that period you cann't claim deduction

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Vishwajit Singh (Sr. Accountant) (21 Points)
Replied 19 February 2016

Originally posted by : Shivani Mittal
	Mihir In my opinion tution fee and term fee are different as the term fee includes tution fee. Eg : Tuition fee 1365, Computer fee 200, Stationery fee 200 Cultural activities 150 Magazine and Journals 125 Library fee 100 Exam fee 100 Sports fee 100 Art education 100 Welfare fund 80 Medical exam 75 insurance 50. In this case Rs. 1365 is allowed as deduction u/s 80C and sum of all the above components will be coined as term fee.

Can we claim the charges like Smart Classes & E Learning included in School Fees Receipt as a full Time Courses, also included other charges are tution fee, term fee, Activity Charges, Web portal Charges, Computer Charges .

as per above your eg can we claim insurance charges 50 u/s 80D

rajesh krishna (Manager - Accounts ) (27 Points)
Replied 20 February 2016

In the Fee receipt mentioned as below :

Total Package Fee Rs 13000

Transport Fee Rs. 9000

Whether both amount eligible for 80C. Please clarify,

Shivani Mittal (Practice) (425 Points)
Replied 20 February 2016

No, transport fee is not allowed.

asru.j (na) (98 Points)
Replied 29 February 2016

Dear Sir / Madam,

Is Academic Fees (Per Annum) - (as mentioned in the fees book ) can be claimed as Tuition Fees u/s 80C.

Thanks & regards

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Susmita Dutta, CA , CPA (CA ) (2141 Points)
Replied 29 February 2016

The following are the deduction allowed under tuition fees

Fees paid to regular educational institution irrespective of the class attended by the child.
Payment of fees to play schools or crèches will be allowed as deduction.
Fees for admission are excluded from amounts eligible for deduction.
The deduction is allowed only for two children.
Deduction is available of paid basis.
Adopted Child’s tuition fees is also eligible for deduction

The following are the deduction not allowed under tuition fees

Deductions not allowed for private tuition, coaching center.
University College School or other educational institution must be situated in India. It can be affiliate to any foreign university.
A late fee is not eligible for deduction.
Development fees or donation is not eligible.
Payment of fees for overseas education is not allowed.
Fees for admission are excluded from amounts eligible for deduction.
Transport charges, hostel charges, Mess charges, library fees charges incurred for education are not allowed
Spouse’s tuition fees is not allowed for deduction.

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ALOK RANJAN (ACCOUNTS OFFICER) (128 Points)
Replied 29 February 2016

you are not entiteled for any amount because in 80c only mentioned tuition fee so tuition fee separately mentioned in bill. otherwise you are not entitled for any amount.

ALOK RANJAN (ACCOUNTS OFFICER) (128 Points)
Replied 29 February 2016

you are not entiteled for any amount because in 80c only mentioned tuition fee so tuition fee separately mentioned in bill. otherwise you are not entitled for any amount.