Huge amount is incurred tuition fees expenses of the children by parents. Tax deduction is available under income tax for amount paid of tuition fees under Income Tax Act 1961 even though if amount is paid monthly,quarterly or annually.For promoting education Government of India allows deduction of tuition and School Fees Deduction Under Income Tax Act 1961 paid subject to certain conditions as listed below:
An individual can claim deduction upto Rs.1.5 lakhs upto two children per financial year.If assessee has got more than two children deduction upto two children is available.There is no specification in the act that child should be legal child even unmarried person can claim deduction of adopted children.
For salaried employee ,employee need to submit proof of tution fees to employer and need to shown in investment form.For other than salaried employee,assessee need to claim deduction under section 80C in the schedule VI-A of the income tax return.
Q.What should be the legal status of assessee to claim deduction?
A.Legal status of assessee should be Individual hence HUF are not eligible.
Q.Can student himself take the deduction of tuition fees in his personal life?
A.No,student himself cannot take the deduction of tuition fees in his personal life.
Q.Whether one claim deduction for tuition fees paid for spouse or wife?
A.No,tuition fees paid for education of spouse or wife is not deductible.
Q.When deduction is available?
A.Deduction of tuition fees is available on payment basis.For Eg:If fees for 2020-2021 paid in year 2019-2020 deduction of fees is available during FY 2019-2020.That is deduction of tuition fees is available on payment basis.
Q.For which kind of course deduction available?
A.Deduction under 80C is available only on full time courses hence in our opinion deduction under income tax is not available under part time or distance courses.
Q.Whether deduction under 80C is available if school,college,university or other educational institution is situated outside India?
A.No, deduction under 80C is available if school,college,university or other educational institution is situated outside India.Deduction under section 80C is available for tution fees even if college,university or school situated in India though affiliated to foreign university.
Q.Whether play school,nursery or pre nursery fees is covered under 80C deduction?
A.Yes,play school,nursery or pre nursery fees is covered under 80C deduction.
Q.Which expenses are not allowable under 80C for tution fees?
A.Inclusive list of not allowable expenses includes but not limited to donation,development fees,library fees,Mess charges,hostel charges,Transport charges,delayed fees,Term fees,private tuition,etc.
Q.For which class deduction is available?
A.Deduction under this section is available for any class.
Q.Is there is any age limit of children for claiming tuition fees deduction under section 80C?
A.No,there is no age limit of children for claiming tuition fees deduction under section 80C that is children can be either minor or major.
Q.Can deduction be claimed for tuition fees paid for private coaching?
A.No,tuition fees for private coaching cannot be claimed as deduction.
Education allowance for individual employee:
- Children Education allowance: Upto two children per month per child Rs.100.
- Hostel Expenditure allowance:Upto two children per month per child Rs.300.
Deduction for education loan:
Repayment of education loan can be claimed as deduction under section 80E for education loan taken for pursuing higher studies in India or abroad.
Note:Education allowance,Education loan and fees paid for tuition are all different and all can be claimed as deduction as mentioned above.
Thus above are provision of School Fees Deduction Under Income Tax Act 1961.