Income Tax F/Y 2011-12 - FAQ's Regarding Tution Fee

Friends,

The financial year 2011-12 is going to complete. Every one of us is planning How To Save Tax. Friends, there is a very good option u/s 88 to make saving and cut down your income tas liablity. Yes we are talking about "Tution Fee Deduction". The relevant part of this section is reproduced here under :-

"(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4) "

"(4) The persons referred to in sub-section (2) shall be the following, namely: 

(a) ......................

b) .......................

c) for the purposes of clause (xvii) of that sub-section, in the case of an individual, any two children of such individual."

Here are some important points regarding above:-

• One can claim up to Rs. 100000/- deduction as Tution Fee.
• Under Hindu Undivided Firm you are not eligible to avail this deduction. Its only for Individuals.
• The deduction is available for any two children.
• The expenditure incurred on his/her studies will not be covered under this section.
• The fees should be paid to a University, College, School or other Educational Institute. No rebate is allowed for private Tuition, Coaching classes for professional courses. 
• The Institute should be in India. It could be a center of any Foreign Institute. 
• No rebate will be allowed for Development Fee, Donations or payments like these. Only Tuition Fee paid will be counted for this purpose. 

Frequentally Asked Questions (FAQ'S) regarding Tution Fees

Q1: Can Mother claim the benefit of tuition fees paid for his son/daughter.

Ans:Assessee means both mother and father both can take the benefit u/s 80 C for amount paid by them respectively.

Q2: If a couple have four children,can they both claim fees for two children each?

Ans:Yes ,husband and wife both have a separate limit of two children each ,so they can claim deduction for 2 children each.

Q3: If a Couple has one child and paid a fees of 200000 rs can they both claim tuition fess 100000 each ?

Ans. :Yes ,they both can claim deduction for 100000 each subject to they have actually paid same amount .If husband has paid 1.50lac and wife has paid 50000 then husband can claim 100000 and wife can claim 50000.

Q4: Rajesh has paid tuition fees for his child 2000/- in January 2012 relates to period march to june 2012 ,how much amount he can claim deduction in assessment year 2012-13?

Ans: He can claim full 2000 rs in assessment year 2012-13 , as this deduction is available on the basis of payment and it may or may not be related to the period in which it has been paid.

Q5: Is Late fees paid with tuition fees is eligible for deduction ?

Ans: No,late fees is not eligible for deduction.

Q6: Is tuition fees admissible for Pre-Nursery class also?

Ans: Pre-Nursery ,play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007)

Q7: Raju has paid Rs 46000 (Rs 8000 admission fees, Rs 5000 development fees Rs 5000 caution money, Rs 12000 annual charges and Rs 16000 @Rs 2000 per month for March-Oct 2012 fees) in January 2012. How much he can claim reimbursement as well rebates/deductions in Financial year  2011-12 and 2012-13.

Ans:As explained above in the article, tuition fees meaning is wide in income tax as generally perceived ,so in my opinion admission fees rs 8000 ,12000 annual charges and 16000 fees is covered for claim u/s 80C .Development fees is not allowed and caution money,as it is refundable amount ,hence not allowed.You can claim the tuition fees on payment basis whether relates to this financial year ,old or coming financial year.

Q8: Are there any particular educational courses for which income tax exemption is given?

Ans:No specific course defined in the Income tax act ,but course should be in India and a full time course

Q9: My Son has been going to Play School Since 01/04/2011. Can I claim the fee paid during the year under Children's Education(80-C). The receipt given by the school shows quarterly fee, & not tuition fee.

Ans:You can claim tuition fees paid for playway school.but the break up of the fees should be obtained from the school .Take a certificate from scholl authorities regarding full year fees on letter head with their seal.