What Amount will be deductible under Section 80C ?
This query is : Resolved
24 July 2009
The Payment of Fee (Full-time) for Education in India during the Financial Year 2008-2009 is Rs.4,40,000/-. What Amount will be deductible under Section 80C as per Income Tax.
1st Installment Paid : Rs.1,25,000/- (Tuition- 1,05,000/-; Security- 10,000/-; Facility Dev.Account- 10,000/-)
2nd Installment Paid : Rs.1,13,000/- (Room Rent- 40,000/-; Boarding- 30,000/-; Student Welfare Activity10,000/-; Reading Materials/books- 25,000/-; Alumni Association fee- 3,000/-; Library fee- 5,000/-;
3rd Installment Paid : Rs.1,01,000/- (Tuition fee)
4th Installment Paid : Rs. 1,01,000/- (Tuition fee).
1st Installment Paid : Rs.1,25,000/- (Tuition- 1,05,000/-; Security- 10,000/-; Facility Dev.Account- 10,000/-)
2nd Installment Paid : Rs.1,13,000/- (Room Rent- 40,000/-; Boarding- 30,000/-; Student Welfare Activity10,000/-; Reading Materials/books- 25,000/-; Alumni Association fee- 3,000/-; Library fee- 5,000/-;
3rd Installment Paid : Rs.1,01,000/- (Tuition fee)
4th Installment Paid : Rs. 1,01,000/- (Tuition fee).
24 July 2009
Section 80C of the I T Act does not provide the definition of tuition fee , however there is express provision what can not be allowed in the name of tuition Fee.
The Section 80C (xvii) states “
“as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section (4);“
Therefore the provision clearly prohibit allowance of tuition fee in the name of :
Development Fees
Donation or
payment of similar nature
In my view the lawmakers have excluded within the ambit of definition of tuition fee ,any payment which is associated with the Development of school or college or institution .
Hence , all payments related to education of the child which a school or college imposes whether known as tuition fee or otherwise should be allowed u/s 80C. You should claim the expenses you have mentioned for 80C deduction as follows 1st Installment Paid : Rs.1,05,000/- [however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
2nd Installment Paid : Rs.nil[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
3rd Installment Paid : Rs.1,01,000/- (Tuition fee)[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
4th Installment Paid : Rs. 1,01,000/- (Tuition fee).[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
Section 80C of the I T Act does not provide the definition of tuition fee , however there is express provision what can not be allowed in the name of tuition Fee.
The Section 80C (xvii) states “
“as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,
(a) to any university, college, school or other educational institution situated within India;
(b) for the purpose of full-time education of any of the persons specified in sub-section (4);“
Therefore the provision clearly prohibit allowance of tuition fee in the name of :
Development Fees
Donation or
payment of similar nature
In my view the lawmakers have excluded within the ambit of definition of tuition fee ,any payment which is associated with the Development of school or college or institution .
Hence , all payments related to education of the child which a school or college imposes whether known as tuition fee or otherwise should be allowed u/s 80C. You should claim the expenses you have mentioned for 80C deduction as follows 1st Installment Paid : Rs.1,05,000/- [however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
2nd Installment Paid : Rs.nil[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
3rd Installment Paid : Rs.1,01,000/- (Tuition fee)[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
4th Installment Paid : Rs. 1,01,000/- (Tuition fee).[however maximum deduction u/s 80C is Rs. 1 lacs p.a.]
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