My money and my Kid………
Both go to school (Comments are welcome in this post)
I hope you would agree to the above statement especially if you are sending your kid to a school in a big city. Most of the “International” schools in India charge more than One Lakh per annum as the school fees. The parents are already feeling the pinch. They spend more in a Nursery class of their kid than they would have spent in a good engineering college.
In a startling Exposé, some parents in Bangalore change their job just when they are about to get their kid admitted in a school. The reason is obviously to get a decent increment to pay the tuition fees
Well, I can write at length on this topic but the intent of this post is to talk about income tax exemption for the tuition fees paid. The government allows tax rebate under section 80C which has a limit of 1,50,000. These are some of the clauses for getting deduction on Income Tax:
Deduction allowed under tuition fees
o Fees paid to regular educational institution irrespective of the class attended by the child.
o University College School or other educational institution must be situated in India. It can be affiliated to any foreign university
o Payment of fees to play schools or crèches will be allowed as deduction.
o Deduction is available only on actual payment and not on payable basis
o Adopted Child’s tuition fees is also eligible for deduction
Deduction not allowed under tuition fees
o Deduction is not allowed for private tuition, coaching center.
o Late fee is not eligible for deduction.
o Development fees or donation or charity in any form is not eligible.
o Payment of fees for overseas education is not allowed.
o Transport charges, hostel charges, Mess charges, library fees charges incurred for education are not allowed
o Self / Spouse’s tuition fee is not allowed for deduction.
o Fees for admission are excluded from amounts eligible for deduction.
You would need to submit receipt issued by the Schools for the payment made during the Current financial year .Full time education of any two children in any university, college, school or other educational institution can be considered.
Submit the tax proofs by January 2015, so that this can be considered for the financial year 2014-2015.