Tution Fees Benefit

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Prashant (Querist)
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15 March 2011 Hi,

Just wanted to confirm that for Income Tax Benefit, how children's tution fees will be considered for claim,

Will that be exempted or deducted in 80 C

Also is there a limit in terms of amount that can be claimed..

Pleas confirm..

Thanks,
Prashant

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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15 March 2011 Following points should be kept in mind regarding deduction for tution fees u/s 80C---

1. Deduction for tuition Fees is available up to Rs.100000 /-
2. The limit of one lac as above is total limit u/s 80C for all type of savings ,plus section 80CCC(pension policy) plus u/s 80CCD(Contributory Pension Plan).Means the aggregate amount of deduction under above referred sections can not exceed Rs. 1,00,000.
3. The deduction is available to Individual Assessee and not for HUF.
4. The Deduction is available for any two children.
5. This the only clause u/s 80 C where assessee can not claim tax benefit for expenditure done on himself.Means if assessee has paid tuition fess for his studies ,he will not be eligible.
6. Deduction is not available for tuition fees paid for studies of spouse.
7. The deduction is available for Full Time courses only,so no deduction for part time or distance learning courses.(This is my opinion but point is not very clear)
8. The fees should be paid to university, college, school or other educational institution,so no rebate for private tuitions.
9. Tuition fees paid for coaching courses for admission in professional courses or any other type of courses are not covered as that fees is not paid for FULL time eduction.
10. The center mention above in point 8 must be situated in India,so location should be in India though it can be affiliated to any foreign institutes.
11. In This section tuition fees has a wide meaning than normal parlance ,means here tuition fees means total fees paid minus any payment towards any development fees or donation or payment of similar nature.so admission fees is also allowed.
12. In My Opinion Transport charges ,hostel charges,Mess charges ,library fees ,scooter/cycle/car stand charges is not allowed.
13. Building fund or any donation etc not allowed

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