How to claim tax deduction on tuition fees

Tuition fees paid to a university, college, school or educational institution located in India for full time education are eligible for tax deduction under section 80C of income tax act 1961.

Tax deduction limit for tuition fees is within the overall limit of section 80C. For the financial year 2019-20, overall limit of section 80C is Rs 1, 50,000. In this article, we will discuss, how to avail Income Tax benefits on tuition fees. To get eligible, for tax deduction taxpayer is required to satisfy following conditions as specified in section 80C.

What types of educations are covered for tax deduction?

As per section 80C, to get eligible for tax deduction under section 80C, tuition fees must have been paid for a full-time education, including amount paid to any play school activities, pre-nursery and nursery classes (circular 9/2008, 8/2007).

Tuition fees must have been paid to any registered university, college, school or any other educational institution based in India.

Such educational institution can be a private or government sponsored institute.

Number of children, maximum limit and other conditions

Tax benefit under section 80C for payment of tuition fees can be claimed only up to two children.

If both parents are paying fees, then both of them will be eligible based on the amount paid.

For instance, if you have 3 children then you can take section 80C benefit for 2 children and other parent can take benefit for the third one. You can plan according to your income and tax liability.

Example on tax deduction on Tuition fees

If total tuition fees paid for 3 children during the financial year 2017-18 is Rs 2, 00,000 and you want to claim the entire expenditure under section 80C as tax deduction then you can do so only when both parents have paid it.

If husband has paid Rs 1,50,000, then he can claim deduction of Rs 1,50,000 and wife can take tax benefit of Rs 50,000 by paying it to the institution. Provided all other conditions of section 80C are satisfied.

Remember, to get deduction u/s 80C, you must have paid the fees during the year.

Only tuition fees out of the total fee paid by you will qualify for tax deduction. Payments like development fees or donations or late fee or capitation fees do not qualify for deductions under section 80C.

You need to consider the upper limit specified under section 80C while calculating tax deduction amount of tuition fees along with other eligible investments as listed in the said section. Here are few investments eligible for section 80C deduction within the overall limit of Rs 1,50,000 for the financial year 2018-19 and 2019-20;

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.