Sec 80C deduction

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2010 whether fees for SAP Training qualify for deduction u/s 80C?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 July 2010 No.

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 for deduction 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).

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 July 2010 No as the fees is to be paid for full time education.

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CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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23 July 2010 Fact of the case

Fee paid to SAP training institute

Reason

Tution fee paid for Full time education will be allowable as deduction.. No part time payment no any other payment

Conclusion

In eligible

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Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2010 Whts the final conclusion
eligible or not?
Fees is paid to SAP India Pvt. Ltd.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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23 July 2010 Final Conclusion: Not Eligible.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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23 July 2010 Conclusion

Ineligible

Appeal dismissed.

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