Take Income Tax Benefit On Tuition Fee FY 2020-21 Under Old Tax Regime

In this article you will thoroughly learn how to take income tax benefit on tuition fee FY 2019-20 under old tax regime and under section 80C.

Tax on Tuition fee

How to claim Deduction on Tuition fee

As you know tuition fee comes under section 80C.And you can take maximum of ₹  150,000 deduction for two children.

But if you want to calculate your tax under new tax regime,you can’t take any deduction like 80C to 80U.

Also Read: New tax regime vs Old tax regime 

Tuition fee benefit is for two children

As you know,tuition fee comes under section 80C.And maximum deduction allowed under section 80C is ₹ 150,000.

Suppose if you have two children and you have paid ₹ 50,000 for one child,and ₹ 1,00,000 for second child,then you can take ₹ 150,000 under 80C.

Note : maximum of 4 children’s tuition fees  can be claimed as deduction for one parent each.

3. Eligibility For Tuition fees

  • Deduction is available only under old tax regime.
  • Tuition fees is available only to an individual parent or guardian .
  • The deduction is available to a maximum of 2 children for each individual.
  •  The school, college or university must be situated in India, irrespective of it being  affiliated to a foreign university.
  • The fees can also be claimed by an non-married person or divorced parent.

Which Tuition Fee is not eligible

Development fee or donation  fee, etc  do not qualify for tax benefit. Also, if you haven’t paid the fees on time, the applicable late fee paid will not be eligible.

Also Fees paid to a foreign institution situated outside India is not eligible for this deduction.

Tuition fee for self,brother,sister,father and mother is not eligible.

You may be interested in reading income tax calculations for NPS Employees

Trick regarding Tuition Fee

If both parents are doing jobs,then both can take tax benefit on tuition fee,they have paid separately.

Suppose you have paid 1 lakh for one child and your spouse has paid 150,000 then you and your spouse can take tuition fee amount (₹ 250,000) as deduction separately.

It means that father and mother can take upto ₹ 150,000 tuition fees deduction separately.

Conclusion

Tuition fee is a good saving component under section 80C.Father and mother both can take ₹ 150,000 deduction against tuition fee separately.

All in all,if parents have 4 children studying in any institution,faher can claim up to ₹ 150,000 deduction and mother can also get deduction for the remaining two children,subject to,they have paid tuition fee for their children.

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

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