Claiming of tuition fees is a part of tax deduction under section 80C of Income Tax Act. The total maximum amount limit allowed under 80C is Rs.1,50,000 (Including of 80CCC and 80CCD), under this section individual can claim maximum of 2 children actual fees paid during the financial year.
Example, during the financial year Mr.Raj has paid of Rs.40,000 towards his elder son college fees and Rs.20,000 paid for his younger son school fees. Now Mr. Raj can claim both the fees of Rs.60,000 from Income Tax.
The following conditions should meet to avail tuition fee exemption u/s 80C
- Tuition fee should be paid for full time course educational institutes such as schools, universities, colleges etc.
- If tuition fee is paid for play school and day care is also allowed under this sections as deduction.
- The tuition fee deduction is available for maximum of 2 children
- Individual tax payer can claim tuition fee deduction for adopted child education.
The following payments are not allowed under tuition fees as deduction
- Payment made for part time courses
- Fees paid to any private coaching centre or tutor
- The tax deduction will not be considered in case of payment made for development fees, donation, library charges or mess charges.
- Deduction is not available if fees paid to foreign university located outside India.
Education and Hostel Expenditure Allowances Exemption
- Education allowance of Rs.100 per child is exempted from tax and for maximum of two children per month.
- Hostel allowance of Rs.300 per child is exempted from tax and for maximum of two children per month.