All about tax benefit on tuition fees under Section 80C

24 Feb, 2017Source : ThinkStock Photos

The inbuilt tax advantage

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Sending kids to school has an inbuilt tax advantage for the parents as the tuition fee qualifies for tax benefit under Section 80C. Here's all you need to know about tax benefit on tuition fees.

Eligible institutions

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Tuition fees paid at the time of admission or anytime during the financial year to any registered university, college, school or educational institution based in India is eligible for tax benefit.

Type of education

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Exemption can be availed on full-time education, including any play school activities, pre-nursery and nursery classes. The institution can be either private or a government sponsored one.

Which expenses are not covered?

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Payments other than tuition like donation or development fee or capitation fee made to an educational institution is not eligible for tax deduction. Besides, penalty levied on the tuition fee due to late payment is also not eligible for deduction.

Tax benefit for how many children?

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Fee paid towards the education of two children is applicable for deduction. So if a couple has four children, both can claim tax benefit as both have a separate limit of two children each.

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Which parent gets the tax benefit?

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The parent who makes the payment gets the tax advantage. If both parents are working and pay taxes, both can claim tax benefit on the amount of fees paid by them respectively. So if the fee paid is Rs 2 lakh, of which the father has paid Rs 50,000, while the mother has paid Rs 1.5 lakh, both can claim the amount individually as per the payment made by them.

Source : economicstimes.com