The Government has given clearance for deduction of tuition/school fees paid for the education of children. The summary for the same is as follows:
- Deduction from taxable income under Section 80C is available to individual taxpayers up to a maximum amount of Rs1 lakh for education expenses incurred for one’s children.
- Each parent can claim the deduction for the tuition fees paid for up to 2 children each, thereby covering a maximum of four children in a family.
- This deduction is available to the parent who has made the payment, to the extent of the tuition fee actually paid or Rs 1 lakh (Rs. 1.50 Lakh from A.Y. 2015-16), whichever is lower.
- The deduction can be claimed only for full-time courses including pre-nursery and playschool. Part-time, distance learning courses, private tuitions and coaching classes are not covered.
- This deduction can be availed of on the basis of actual payment made, irrespective of the period to which the fee may pertain.
- Only the tuition fee paid is eligible for deduction. Other expenses, such as transport charges, library charges, hostel charges, development fees or donation, are not covered.