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Deduction under two sections..

Tax queries 1786 views 8 replies

Can an assesse be allowed deduction under sec 10 and 80C both towards children tuition fees..?

I think one can claim deduction only under one section for a given expense.

Please clarify..

Replies (8)

No You cannot claim this way.

Why not ? One is allowance and another is deduction. Both are provided under two different sections and moreover there is no expressive prohibition in either of the sections.

sec 80C prescribes that deduction can be claimed only when the payment is made out of income which is taxable. when ur claiming the income as exempted u/s10 then its not a taxable income, hence the payment made out of the exempted income is not allowed as deduction. 

Originally posted by :Sunali
" Can an assesse be allowed deduction under sec 10 and 80C both towards children tuition fees..?
I think one can claim deduction only under one section for a given expense.
Please clarify..
"

YES YOU CAN CLAIM IT UNDER BOTH SECTION  SECTION 10 IS FOR EXEMPTION AND SECTION 80 IS FOR DEDECTION
 

congrate Raja V, you are right, but little confused...

see allowances Under section 10(14)(ii) read with Rule 2BB(2), children's education allowance qualifies for an exemption of Rs 100 per month per child subject to a maximum of two children and any allowance granted to meet the hostel expenditure of the employees children qualifies for an exemption of Rs 300 per month per child subject to a maximum of two children. Acc to Sec 80 C (xvii) 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 two children of such individual. (but that should be with in 1 lacs ) So one can take a exemption u/s 80C as per provision and income tax does not say any thing abt wheather children is dependent or independent but if you will be read the provision than they are assuming that children is dependent Amit hope i also cleared your confusion...

**DM

PLEASE SEND ME NEW TAX RATES FOR F.Y 2008-09.

Originally posted by :Sunali
" Can an assesse be allowed deduction under sec 10 and 80C both towards children tuition fees..?
I think one can claim deduction only under one section for a given expense.
Please clarify..
"


 

It is allowed only under section 80c.

Originally posted by :Raja V
" sec 80C prescribes that deduction can be claimed only when the payment is made out of income which is taxable. when ur claiming the income as exempted u/s10 then its not a taxable income, hence the payment made out of the exempted income is not allowed as deduction.  "


 

Does it mean that deduction u/s 80C can be allowed for the residual tuition fees which is not allowed as exempted under sec 10(14)...??


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