Income Tax Benefits on Children Tuition Fees expenses - Rules & Conditions

child tuition fees conditions

Section 80C of the Income Tax Act has provisions for tax deductions on tuition fees paid by a parent towards educating his/her children. Taxpayers can avail deductions upto Rs 1.5 lakhs within the overall limit of Section80C. 

Parents can claim  income tax exemption on the tuition fees paid for their children in a particular financial year. Only tuition fees part of the total fees paid is allowed for deduction. Other components of fees such as development fees,transport fees are not eligible for deduction under Section 80C.

It can only be claimed in respect of two dependent children and for fees paid to an affiliated education institution, college or school in India.

Tax Benefits provided to Tuition Fees Expense

Section80C Benefits - Expenses made on tuition Fees are eligible for deduction under Section 80C subject to a maximum of Rs 1.5 lakhs in a financial year. For tax purposes, the fee reduces the total gross income which in turn reduces the tax liability. 

For example, Mr. X is a salaried individual with two children, aged 21 and 14 respectively. He pays an annual tuition fee of Rs 40,000 towards his son's college fee and Rs 20,000 for his daughter's school fee, spending a total of Rs 60,000 per year on educating his children. He can now claim this amount as tuition fee deduction under Section 80C.

Rules for claiming Benefit on Tuition Fees

Who can claim?
- Tax benefits on tuition fee can be availed only by individual taxpayers.
- Hindu Undivided Families or corporates not eligible for deductions.

How many Children?   
- Benefit applies for the fees paid for up to two children per individual. An individual taxpayers cannot claim the fee paid towards educating more than 2 children as deduction.
- If both parents are taxpayers, then they can claim deductions for 4 children, as per the payment made by them.
- Adopted Child's school fees is also eligible for deduction, provided that an assessee isn't claiming it for more than 2 children.

How to claim the tax exemption?
- The person would need to submit receipt issued by the Schools for the payment made during the financial year to their employer.
- For an Individual other than salaried employee, you would have to claim the deduction under VI-A schedule by showing the amount of fees paid under section 80C in the income tax return.

Eligibility Conditions for Institutions and Courses

  • Tuition Fees Paid to affiliated educational institution, University, College, School within India.
  • Institutions based in India, even if it is affiliated to any foreign university.
  • Institution can be either private or a government sponsored one. 
  • Deduction is available only for full-time education. This includes nursery school, creches, play schools fees, fees for graduation or post-graduation courses.

Non Eligibility for Institutions and Courses

  • Fees paid for part time courses cannot be availed as deductions.
  • Payments made towards Development fees, donation or charity, Private Coaching center, other expenses such as hostel expenses, mess charges, library charges or similar payments cannot be availied as deductions.
  • Fees paid towards educating anyone else, including himself/herself or a spouse cannot be claimed as deductions.
  • Late school fees paid is not eligible for deduction.
  • Fees paid to a foreign university situated outside India would also not be eligible for deduction.
  • One cannot claim tax deductions on distance education courses.