Income tax deduction for Tuition Fee – Section 80C

Now, an individual tax payer can claim income tax deduction on tuition fee that is paid to schools or colleges for higher education of children under section 80C of income tax act, 1961.

Payments towards tuition fee to any university or colleges or educational institutions in India for a full time education at the time of admission or otherwise is eligible for tax deduction under section 80C.

Tuition Fee u/s 80CFees like development fee or donation or capital fee or any other fee of similar nature is not eligible as tuition fee under section 80C.

Deduction for tuition fee is available only for any two children of an individual. If you have more than two children then you have to choose any two children for whom you want to claim tuition fee deduction.

If your spouse is a taxpayer then you can also claim the benefit of tuition fee deduction from her taxable income but you both can not claim for the same child.

Full time education which is eligible for tuition fee deduction also includes payment made for play school activities, pre nursery classes and nursery classes. (circular 9/2008, 8/2007)

If your children are taking any part time courses or distance learning courses then the tuition fee paid toward that will not be eligible as tuition fee under section 80C.

Who can claim tuition fee deduction – Section 80C

Tuition fee deduction under section 80C, is available to any person including a salary person, self employed person who paid tuition fee during the financial year for their children.

If you have incurred tuition fee for your own study or for your spouse then that is not qualifying for deduction under section 80C of income tax act, 1961 as it is available for the payment you make towards your children’s education.

Maximum Tax Deduction Allowed on Tuition Fee

According to section 80C of income tax act, a maximum amount of Rs. 1, 00,000 can be availed under section 80C, 80CCC or 80CCD(1). So, if you don’t have any other investment mentioned under these three sections then you can claim total deduction of Rs. 1, 00,000 as tuition fee.

If you have any other investments like Life insurance policy, provident fund etc then all together you can claim a deduction up to Rs. 1, 00,000.

Budget 2014 has introduced a higher tax deduction of Rs.150000 in section 80C. If this budget passed then from assessment year 2015-2016 onwards you can claim a higher tax deduction of Rs.150000 under section 80C.

FAQ on tuition fee – Section 80C of Income Tax Act, 1961

I have three children for whom I am paying 65, 000 every year as tuition fee. What will be my eligibility for income tax deduction under section 80C?

According to section 80C of income tax act, Rs. 1, 00,000 can be claimed as income tax deduction for payment towards tuition fee. But It’s restricted only to two children.

In your case, you can claim maximum deduction of up to two children for the tuition fee. You can take the higher amount of tuition fee that you paid for you child and claim it as a tax deduction.

If your spouse is also a tax payer then she can take such benefits up to a maximum number of two children. With this your spouse can also claim tuition fee deduction for one child that you are unable to claim

Budget 2014 has increased a the maximum tax deduction limit of section 80C from Rs. 100000 to Rs. 150000. If this budget is passed then you can claim higher tax deduction of Rs. 150000 for your children’s tuition fee.

We are salaried person and incurred a tuition fee of Rs. 2, 00,000 for our only child studying in a college. Can we both claim income tax deduction of Rs. 1, 00,000 each?

Yes, deduction under section 80C can be claimed provided you both have incurred this expenditure i.e. you have paid Rs. 1, 00,000 and your spouse also paid Rs. 1, 00,000 for tuition fee. If any one of you paid less then he or she will be eligible for lesser amount and the balance left out can not be claimed as deduction.

For example in the above case if wife has paid Rs. 50, 000 and the husband has paid Rs. 1, 00, 000 then wife can claim Rs. 50, 000 as tax deduction and in the case of husband its Rs. 1, 00,000. The balance of Rs. 50, 000 can not be claimed as tax deduction.

Next time when you make payment towards your tuition fee you need to make sure that you both paid Rs. 1, 00,000 each.

Can I claim tuition fee deduction for my daughter’s play school payment?

Yes, tuition fee paid towards your daughter’s play school can be claimed as deduction. Please remember it’s restricted to only two children. If you have more than 2 children then your income tax deduction claim will be restricted to only two children.

In addition to my tuition fee payment, I have investment in life insurance policy of my son and contribution to public provident fund account. What will be my eligible deduction under income tax act?

As per section 80C of income tax act, the total amount available for income tax deduction is Rs. 1, 00,000. You can not claim individual deduction under section 80C as this section provides deduction of Rs. 1, 00,000 for some specified investments in which all the three investments you mentioned are there. For details on section 80C please read this article

I have incurred tuition fee for my dependent children’s college education in USA. Can I claim tax benefit under section 80 C of Income tax Act, 1961?

NO, as per the provision on income tax act, tuition fee paid in India is allowed as income tax deduction.

Note: Budget 2014 has increased the maximum tax deduction limit of section 80C from Rs. 100000 to Rs. 150000. If this budget is passed then you can claim higher tax deduction of Rs. 150000 for your children’s tuition fee.

24 thoughts on “Income tax deduction for Tuition Fee – Section 80C

    1. YFB

      Deduction u/s 80C is available for payments towards tuition fee to a university for a full time education. This means deduction will not be available to distance education or part time courses.

      Reply
      1. Nitin

        If it is a full-time course in a recognized university, will there be a tax exemption for tuition fee paid for my spouse?

        Reply
  1. Nitin Arora

    my kids are studying in a school which is not recognized with any authority . Can i claim deduction under 80 c

    Reply
  2. Nitin Arora

    It is in bihar’s smallest district sheikhpura where i m posted. I know because it is in its first establishment year

    Reply
    1. YFB

      As per section 80C, tuition fee paid to any university, college or educational institution for a full time course will be eligible for deduction.
      As per circular no:9/2008 and 8/2007, tuition fee deduction can even be claimed for payments made for play school activities, pre nursery classes and nursery classes.
      If your school falls under these criteria then your tuition fee payments will be eligible for section 80C deduction.

      Reply
  3. M S Nema

    Whether tution fee paid for higher study of children through education loan fron banks is elligible for exemption under Sec80C

    Reply
  4. Mithun Sikdar

    My child is studying a preschool and provided me the tution fee receipt for the whole year as Rs 16500/-. But the school is not providing me their registration number though it is a very reputed preschool in our city having only Nursery class. Whether the tution fee will be covered under 80 C.

    Reply
  5. Sundararajan A S

    My daughter is 4.5 years old and studying in UKG; I am paying the school fees of around Rs.24000 per year in 4 terms of Rs.6000 each. Can this be claimed in 80C as tax exemption. Similarly, I also pay Rs.18000 in 3 terms of Rs.6000 each for the transport.

    Reply
  6. shivanand

    Dear Sir,

    I AM HAVING 1 DOUGHTER NOW SHE IS STUDYING IN ENGINEERING FOR ENGINEERING SEAT SHE HAS APPLIED THROUGH K-CET for K Cet we have paid Rs 45000.00 for college allotment and tution fees of college is Rs 28350.00 both amount means Rs 73350.00 can we claim as education fees of my child in Income tax exemption u/s 80c what is maximum limit for 1 child.

    Reply
    1. Narendra babu

      My Son is STUDYING IN ENGINEERING, FOR ENGINEERING SEAT he HAS APPLIED THROUGH K-CET for K Cet we have paid Rs 50000.00 for college allotment can we claim as education fees of my child in Income tax exemption u/s 80c what is maximum limit for 1 child.

      Reply
  7. Vinod Kumar

    I am a goyt employee and deduction for provedent fund is 150000/- yearly. my son is studying in b tech for which i am paying a tuition fees rs 150000/- yearly. Can I claim a tax beniefit for tuition fees.

    Reply
  8. Raginisaini

    I’m a retired govt employee, I’d like to know that can I get tuition fee rebate on my daughter in laws professional master degree

    Reply
  9. Jitendra rathore

    My son is studying in class and I paying 13400/ year tuition.can I get deduction in income tax?

    Reply
  10. Durgesh Sharma

    Sir,

    Admission fee and computer fee can considered in tax deduction. If yes, please provide me detail to claim.

    Reply
  11. Poornima

    Hello,

    Please let me know if I can claim tuition fee of my son, which has receipt under my husband name.

    Thanks & Regards,
    Poornima JM

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *