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Term Fee allowed as deduction u/s.80C

Open uri20170510 32134 blndvi?1494421794 Raja asked about 2 years ago

Dear Friends, I have paid term fee for my children and i produced the term fee receipt to my employer for allowing deduction u/s.80C. But my employer refuse to accept because only tuition fee is allowed as deduction, he says. I want to know term fee is nothing but Tuition fee or both are different? My employer advised me to get the letter in school letter head stating i have paid tuition fee. is it correct? Expecting your views. Thank you, Raja

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3 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 megha answered about 2 years ago

hello, Deduction u/s 80C w.r.t school fees covers only the Tuition Fees and not the Term Fee. A Term Fee charged by schools is different from Tuition Fees. Tuition Fee is the general fee charged for attending the school whereas term fee is charged for different semesters/terms during an academic year. Your employer is right. you can try the option given by employer to ask for the letter from school that stating you have paid tuition fee

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Kushal answered about 2 years ago

Dear Mr. Raja, Your employer is not wrong in this case. Deduction u/s 80C w.r.t school fees covers **only the Tuition Fees and not the Term Fee**. A Term Fee charged by schools is different from Tuition Fees. Tuition Fee is the general fee charged for attending the school whereas term fee is charged for different semesters/terms during an academic year. Thank You. Kushal Prasad

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 jitendra etikala answered about 2 years ago

Deduction u/s. 80C for tuition / school fees paid for education of children Who is Eligible: Deduction for tuition fees u/s. 80C of the Income Tax Act 1961 is available to Individual Assessee and is not available to HUF. Maximum Child: Deduction under this section is available for tuition fees paid on two children’s education. If Assessee have more then two children then he can claim tuition fees paid of only two children’s. The Deduction is available for any two children. Here we would like to mention that husband and wife both have a separate limit of two children each, so they can claim deduction for 2 children each. Expenditure paid for self education not allowable: – This is the only clause u/s 80C where assessee can not claim tax benefit for expenditure incurred for self. In other words if assessee has paid tuition fees for his own studies, he will not be eligible for deduction. Fees paid for spouse: Deduction is not available for tuition fees paid for studies of spouse. Maximum Limit: Deduction for tuition Fees is available up to Rs. 100000 (Rs. 1.50 Lakh from A.Y. 2015-16). Please Note that aggregate amount of deduction under section 80C , 80CCC and 80CCD shall not exceed Rs. 1,00,000/- (Rs. 1.50 Lakh from A.Y. 2015-16). Deduction available on payment basis: – Deduction under this section is available on payment basis. Fees may be related to any period. For example feed paid for April 2009 if Paid in March 2009 will be eligible for deduction u/s. 80C in A.Y. 2009-10. Deduction not available for part time course:- The deduction is available for Full Time courses only. In our opinion no deduction is available for part time or distance learning courses. Fees for Private tuition/Coaching Classes not eligible for deduction u/s. 80C :- The fees should be paid to university, college, school or other educational institution. No deduction available for fees paid for private tuition’s , coaching courses for admission in professional courses or any other type of courses are not covered as that fee is not paid for FULL time education. Location of University, college, school or other educational institution: University, college, school or other educational institution must be situated in India though it can be affiliated to any foreign institutes. Allowability of pre-nursery, play school and nursery class fees: – Pre-nursery, play school and nursery class fees is also covered under section 80C (circular 9/2008 & 8/2007). **Not allowable Expenses:-** 1. Development fees or donation not eligible. 2. Transport charges, hostel charges, Mess charges, library fees, scooter/cycle/car stand charges incurred for education are not allowed. 3. Late fees is not eligible for deduction. 4. Term Fees is not eligible for deduction. 5. No deduction for part time or distance learning courses. 6. no rebate for private tuition. 7. Building fund or any donation

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