College/School fee paid can save your tax u/s 80C


Applicable:
Financial Year: 2014-15 onwards
Asst. Year: 2015-16 onwards

(Note: Although the deduction below is applicable prior to FY 2014-15, w.e.f. 2014-15 the deduction limit is increased from 1,00,000 to 1,50,000)


 

Yes, School Fee paid by an Individual Assessee can save tax up to Rs. 46,350/- for a single parent and up to Rs. 92,700/- for husband & wife depending on Income and no. of children. let us jump directly to the conditions surrounding this.School fee deduction

 

1. Who is Eligible?

An INDIVIDUAL Assessee is eligible for claiming school fee as deduction and Assessee with HUF Status cannot claim this deduction. Fee paid for education of children are eligible and Fee paid towards SELF is NOT eligible for education. [Strange right? but that is how it is]

 

2. For how many children can you claim deduction?

A single parent can claim deduction for paying school fee upto 2 Children which means husband and wife can claim deduction upto 4 children. If your case is similar to this one then, Selecting right combination can give you optimal tax saving. Provide us gross income details of you and your spouse as well as school fee figures in the comment section below we will provide you with the right combination for claiming maximum deduction.

 

3. Maximum deduction you can claim:

You can claim a maximum of Rs. 1,50,000/– from the Financial Year 2014-2015 (Asst. Year 2015-016)

 

4. Payment Basis and not due basis:

Basis for claiming deduction is payment of school fee irrespective of the period for which school fee is paid.

e.g. Fee paid on 21st March, 2015 pertaining to academic year 2012-13 can still be claimed as deduction for the FY 2014-15 (AY 2013-2014).

5. Other Relevant Information:

a. School/College/University Location: It must be located within India. Therefore any fee paid for overseas courses are not eligible for deduction

b. Only School Fee paid is considered for deduction, other expenses included in fee such as Transport Charges, Hostel Charges, Donation, Development Fee, etc., cannot be considered for deduction.

c. Deduction can be claimed only for Full Time course including Pre-School and Play School. Part-time course doesn’t qualify for deduction purpose.

 

Have questions or suggestions? then don’t hesitate to comment in here below.

 

Updated: 7th January 2015

Dilip Kumar

+Dilip Kumar (Author and Editor of The Tax Info) is a CA Student from Hyderabad, Loves Blogging on Tax related matter.

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