Income tax deduction on Tuition fees can be claimed under section 80C of the income tax act, 1961. It can be claimed for any two children of the individual for a full time education in India.
Tax deduction on Tuition fee is allowed to every individual who is liable to pay income tax or to a Hindu undivided family.
If in a family both husband and wife are tax payers and they have more than two child then each one of them can claim tax deduction under section 80C for any two children as Income tax act does not specify that both husband and wife can claim up to two children.
How Tuition fee in defined
Tuition fee for the purpose of section 80C includes any payment of fee to any university, college, school or other educational institution in India except any payment in the nature of development fees or donation or capitation fees or payment of similar nature. Such tuition fee should have been paid toward full time education of your child.
How to claim tax deduction on tuition fee
You need to collect all receipts paid to school or colleges or university and at the end of the year while filling your Income tax return you need to claim the portion of fee that is paid towards tuition fee of your child.
If you are a salary person then you need to declare tuition fee amount to your company at the beginning of the year for actual TDS calculation. At the end of the year you need to submit documents as a proof towards payment of tuition fee.
Self employed individuals can also take benefit tuition fee tax deduction under section 80C. Documents as proof of payment towards tuition fee has to be kept with such individual after filing Income tax return. In case its asked by the assessing officer, the same need to be produced before him.
Tax deduction on tuition can also be claimed under section 80C for your step child or adopted child. Tuition fee paid towards full time courses in play school activities, pre nursery and nursery classes are eligible for tax deduction.
If in your family one person has higher income compare to other and the deduction amount is not up to Rs. 1, 50,000 then either of you can pay the higher tuition fee for your child and take benefit of tax deduction u/s 80C.
Note: If you have opted to pay tax as per new tax regime under section 115BAC of the income tax act, 1961, then you are not eligible for tax deduction under section 80C. To claim tax deduction for tuition fees paid during the financial year, you need to go for old tax regime.
