Indian government provides a tax benefit if you pay tuition fees for your children. This is part of deductions available as part of Section 80C of the Income Tax Act, 1961. Learn all about this provision in this article.

Are you paying tuition fees for full time education of your children – Do not forget to claim income tax deduction

Under Section 80C of Indian Income Tax Act, 1961, you can claim income tax deduction on the tuition fees paid for full time education for two of your children in India.

How do you claim it?
When you fill your Income tax return, you should declare the tuition fees paid under “Deductions under chapter VI A (Section)” / “Section 80C”.

How does it work?
Once you compute your total taxable income, you can deduct the tuition fees. In effect you do not pay tax on the tuition fees.

Limit
The benefit is provided under Section 80C. This section includes other items like PPF investment, ELSS, Provident fund. The combined limit on all the deductions is 1.5 lakhs.

Number of children
You can claim tuition fees for maximum of two children. If you have more than 2 children, then your spouse can claim tuition fees for two more children, provided he/she has paid the tuition fees from his/her income.

Which fees is covered?
Only tuition fees is allowed. Other fees like development fees, admission fees etc is not covered.

Part-time education
Only full-time education is covered. Part-time education like coaching classes, private tuition, exam prep courses is not covered.

Full-time education
All full-time education is covered. This includes pre-nursery, play-school, nursery too.

Whose education?
Tuition fees paid for the full time education studies of your children.
Education of yourself, siblings, spouse or any other relative is not covered.

When can you claim the benefit?
You can claim benefit for the same year in which you paid the fees.
So if you pay in Feb 2016, then you can claim benefit for the financial year 2015-16 (April, 2015 to March, 2016).

Proof/Documentation
It is advisable to get a receipt or letter from the educational institution stating your name, your child’s name and the amount towards tuition paid for the year. Your company may demand this to give you 80C benefit. The proof is not needed at the time of filing Income tax return. But if IT department asks for a proof a later point in time, you will have produce it.

Example

You have one child and you paid 15000 towards her nursery.
Yes, you can claim 15000 as long as the fees was tuition fees.