Query reg. Donation at the time of admission for pre-school

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19 January 2010 A is a salaried individual.

A proposes to admit his daughter (3 years old) in a school (which has up to 12th standard), where A is asked for a donation of approx. Rs.30000/- in addition to admission fees, tuition fees, books, uniforms, etc.

Query 1 :

Whether A is eligible to avail exemption under income tax act for such donation payment to school.

Query 2 :

A has been sending his daughter to play school (KIDZEE) for 10 months and paying Rs.25000/- approx.

Whether A is eligible to avail exemption under income tax act for such payments to play school (KIDZEE).

I await the views of experts for my above mentioned queries.

CA Prashant Gupta

CA Prashant Gupta (Expert)
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19 January 2010 u/s 80C deduction of tuition fees is available. it specifically says no deduction of donation or development fees. it gives deduction only when it is to any university, college, school or other educational instituion and for purpose of full-time education.
for for query 1 No deduction for donation
for query 2 no deduction as it is no tuition fee and KIDZEE is not for full time education institute.

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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19 January 2010 Hi Deekay,

Ans 1. Unless the school is eligible to issue a 80G certificate such donation is not deductible.

Ans 2. Out of that Rs. 25000 the amount paid towards Tution fees is deductible under section 80C.There is no restriction on the age of the student and type of the school.it includes play school also.

"(13) Tuition fees, whether at the time of admission or thereafter, paid to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the employee.

Full-time education includes any educational course offered by any university, college, school or other educational institution to a student who is enrolled full-time for the said course. It is also clarified that full-time education includes play-school activities, pre-nursery and nursery classes.

It is clarified that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature."

see the link http://law.incometaxindia.gov.in/dittaxmann/circular/%5B2008%5D173TAXMAN0027(ST-2).htm

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CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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19 January 2010 Dear Prashant,

I beg to differ for query 2. Please see the wordings of the circular.Circular No. 9/2008, Dated 29-9-2008

Point 13

It says that " full-time education includes play-school activities, pre-nursery and nursery classes."

Regards Sanjay

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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19 January 2010 agree with Sanjay ji

sivasankar

sivasankar (Expert)
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19 January 2010 Hi all,
Only tution fee is covered u/s 80-C.
If the fee includes some other fees like bus fees,library fee etc then a separate certificate from the bead of the institution is to be received mentioning the tution fee alone.
Fee for nursery school also included

Guest

Guest (Querist)

20 January 2010 Hi Sanjay, Thank you for your reply and for others too.

Sanjay - now I develop further queries.

I have just learnt that A has been sending his daughter to play school, which is the FRANCHISEE of KIDZEE. The Franchisee person on their system generated letterhead mentioned as ADMISSION FEES only.

Can we still claim the ADMISSION FEES charged by the FRANCHISEE of KIDZEE.

I may expect you to clear my doubts. Thank you once again Sanjay.

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CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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21 January 2010 Hi Deekay,

Only tuition fee is eligible for deduction under section 80C. No chance of lawfully claim the admission or other fees paid to an educational institute.

Regards

Sanjay