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Deduction of tution fee u/s 80c

Vibhor Pandey (FINAL) (106 Points)

29 February 2012

Dear All,

My Querry Is Related To Deduction In Respect Of Payment Towards Tution Fees :-

One Day A Client Of Our Firm Came With A Private Engineering College Fee Deposit Memo. The Memo Belonged To His Son.In That Memo Amount Recorded Infront Of Tution Fees Is 36000.

Can The Said Tution Fees Paid By Him Is Eligible For Deduction U/s 80C On The Basis Of Said Memo OR He Will Have To Fulfil Any Other Requirement ?

Thanks And Regards.

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7 Replies

CA D R P (Chartered Accountant) (313 Points)
Replied 29 February 2012

no it is not elegible for deduction. because, conditions are as follows:

1. it should be for a full time coaching

2. it shoul not be of a private institute ( i m not sure for this but, there are certain judgments in this case )

so,

i think that it is not elegible. but, you should wait for other's reply.

1 Like

Vignesh Killur (Articled Assistant) (1666 Points)
Replied 29 February 2012

Hi Mr. Pandey,

80C does not make any distinction between private colleges, govt colleges, aided, unaided institutuins etc, recognised, unrecognised institutions etc

The Requirement is that the Payment should be made as

1. Tuition Fees

2. to any university, college, or school or other educational institution situated in India

3. For Full time Education

4. in respect of any two children of the assessee

5. Should NOT be in the nature of development fees or Donation or similar nature.

Thus in light of the above the tuition fees paid to a private engineering college Rs. 36,000 shall be 100% without a doubt be allowable U/s 80C.

Please obtain a proper Receipt and Deposit slip from the client

1 Like

Vibhor Pandey (FINAL) (106 Points)
Replied 01 March 2012

Hii Vignesh,

I Do Agree With You.

But In These Situations, How We Make Sure That Such Fee Payment Slip Is Valid Or Not.

In Case Of Private Colleges And Other Educational Institutions, Situation Becomes More Complicated, As Hundreds Of Engineering Colleges , MBA Colleges Are There.

For example , If A Person Makes A Forged Tution Fee Deposit Slip Of An Unknown MBA College With The Help Of Computer, Regaring His Son , Then How We Make Sure That Such Slip Is Not Forged ?

... Is Any Provision Exists There In Respect Of Tution Fee i.e Mentioning Something On Fee Deposit Slip, Just Like Sometimes, Advertisements Of NGOS Specially Mention That Any Donation Towards Their NGO Is Exempted From Income Tax U/s 80G.

Vignesh Killur (Articled Assistant) (1666 Points)
Replied 01 March 2012

"An Auditor is a watchdog and not a blood hound". This saying is most apt in such type of a situation. An auditor is not responsible for any well thought scheme to defraud the revenue. The entire responsibility is on the assessee if any fraud comes into light. Our responsibility ends in assisting the assessee to file his return of Income based on the information he has provided. Also this is not a tax audit. Also an auditor cannot be asked to do the job of an investigator. So the responsibility is entirely on the assessee. Just obtain a valid receipt which any reasonable person would believe to be true

1 Like

Vibhor Pandey (FINAL) (106 Points)
Replied 03 March 2012

Hiii Vignesh ,

Again I Agree With You. You Are Absolutely Correct.

... But There Is Also a Concept That Auditor Should Try His Best , To Peep In To The Matter And Find Out The Truth. If He Finds Anything Suspicious ,Then He Must Extend His Audit Procedures.

Tution Fee Receipt Is a Thing With Can Be Easily Managed And Misused. That Is Why I Want To Know About The right Procedure To Check Its Validity.

Forgive Me But The Auditor Is A Post Of Dignity, Passion And Integrity. " An Auditor Is A *************** Blood Hound" - Is A Supreme Safe guard For An Auditor.It Is Not Supposed To Be Used In Such A Small Matter.

Vignesh Killur (Articled Assistant) (1666 Points)
Replied 06 March 2012

Hi Mr. Vibhor,

You have high ethical and moral standards

Please refer to the Act regarding this. I am sure you wont find anything in the act as well as the rules.

You can just check if it contains all the requisites of a valid voucher like the Voucher Head i.e the Name of the College, its Registration information, complete address, Contact info is provided, whether the Voucher/Reciept contains a unique serial number, it displays name of the payer of tuition fees, on whose behalf it is paid, date of receipt, period for which it is paid,what is the nature of receipt (Donation, tuition fees ect)mode of receipt (Cash/cheque), Vaild signature of any authorised person ect, seal of the college ect

You can try contacting the college if you have the Phone No., or email them or write them a letter to check if the particular receipt no. & amount matches the clients.

But they can always deny you this info and choose not to disclose info about their books of accounts.

in that case how to check the validity?

Responsibility can only come with power. If we should not have responsibility.

If he truly knows how to con other people & forge receipts it would require the expertise of an investigator to go through the receipt, match it with other receipts issued by the same college, note any differences, handwriting analyist to test the signature, they also test the seal to note any differences, go through the college books of account to find out whether this serial number receipt exists and whether the client has truly paid it etc, whether the son really studies in engg college ect.

Thats my opinion. I also say opinions are like handwatches. Everyones shows a different time

Regit (CA.Final) (320 Points)
Replied 04 May 2012

Hello Mr. Vibhor and others, its too late to reply, but.. I think you have completely went in a wrong mode.

Income Tax return of an indivudual is a 'SELF ASSESSMENT RETURN'.

-In the eyes of the law, An individual computes and files his own return. So person filing return should sign in his return stating that the information stated is correct to the best of his knowledge.

-In india, people feel taxation as complicated than astronomy. So they come to CA's and Tax practitioners for guidence. We will guide them and helo them in filing their return.

-A contractor took a work to construct a house. Later it was found that the land on which the work is going on has been illegally occupied by the present owner. WIll police arrest the contractor and the workers?

-He who signs the return is liable for everything. Why do you worry??????