Every parent wants to provide the best education for their children. But with rising school and college fees, it becomes a big financial burden. However, did you know that you can save tax on tuition fees? The Indian Income Tax Act provides tax benefits for parents who pay for their children’s education.
If you are paying tuition fees for your child’s school, college, or university, you can claim a deduction under Section 80C of the Income Tax Act. This can help reduce your taxable income and lower the tax you need to pay.
Let’s understand in detail how you can claim deductions on tuition fees and what rules you need to follow.
What is Section 80C?
Section 80C of the Income Tax Act allows individuals to deduct up to ₹1.5 lakh from their taxable income for certain expenses and investments. One of the eligible expenses under this section is children’s tuition fees.
This deduction is available for:
✅ Salaried and self-employed individuals
✅ Only for children’s education (not spouse or self)
✅ Tuition fees paid to recognized schools, colleges, or universities in India
If you are paying tuition fees for your child, you can claim this deduction and save a significant amount on your taxes.
Who Can Claim the Deduction?
Not everyone is eligible to claim this deduction. Here are the conditions:
✔️ Only Parents Can Claim: The deduction can be claimed only by the parent who is paying the fees. It is available to both fathers and mothers.
✔️ Maximum Two Children Per Parent: Each parent can claim a deduction for up to two children. If both parents are taxpayers, they can claim deductions for a total of four children (two children each).
✔️ Only Full-Time Education: The deduction is available only for full-time courses in schools, colleges, or universities in India. Part-time courses are not eligible.
✔️ No Deduction for Private Coaching or Tuition: If you are paying for private tuition, coaching classes, or extra-curricular activities, you cannot claim a tax deduction.
✔️ Educational Institution Must Be in India: The deduction applies only if the tuition fees are paid to a recognized educational institution in India. Fees paid to foreign universities are not eligible.
What Expenses Are Covered Under the Deduction?
Under Section 80C, only the actual tuition fees paid to the educational institution is allowed as a deduction. Other fees or expenses are not eligible.
✅ Eligible Expenses:
- Tuition fees paid to schools, colleges, universities, or other educational institutions in India.
- Fees for full-time courses at a recognized institution.
❌ Expenses That Are Not Covered:
- Admission fees or donations
- Development fees or building fund
- Transportation charges (bus fees)
- Hostel and mess charges
- Library or lab fees
- Exam or application fees
- Private coaching or tuition
If your child’s school fee includes multiple charges, only the tuition fee component can be claimed under Section 80C.
How Much Tax Can You Save?
Under Section 80C, the maximum deduction limit is ₹1.5 lakh per financial year. However, this includes other eligible expenses and investments like:
- EPF (Employees’ Provident Fund)
- PPF (Public Provident Fund)
- Life insurance premiums
- Home loan principal repayment
- NSC (National Savings Certificate)
If your total Section 80C investments and expenses (including tuition fees) do not exceed ₹1.5 lakh, you can claim the full amount.
For example:
- If your child’s tuition fees are ₹80,000 and you invest ₹70,000 in PPF, your total 80C deduction will be ₹1.5 lakh.
- If your tuition fees are ₹1.2 lakh and you invest ₹50,000 in other schemes, you can claim only ₹1.5 lakh as per the maximum limit.
How to Claim the Deduction?
To claim the deduction, follow these simple steps:
1️⃣ Collect Tuition Fee Receipts: Keep the original fee receipts issued by the school or college. Ensure that the receipts mention the amount paid, child’s name, and institution details.
2️⃣ Check Payment Mode: The fee must be paid via bank transfer, cheque, or demand draft. Payments made in cash may not be accepted for tax deduction.
3️⃣ Include in Your ITR: While filing your Income Tax Return (ITR), mention the tuition fee amount under Section 80C deductions.
4️⃣ Submit Proof to Employer: If you are a salaried employee, submit fee receipts to your employer before the end of the financial year to adjust TDS (Tax Deducted at Source).
5️⃣ Keep Documents Safe: The Income Tax Department may ask for proof during tax assessments. Keep the receipts safely for at least 6 years.
Other Tax Benefits for Education Expenses
Apart from Section 80C, there are other tax benefits related to children’s education:
1️⃣ Section 10(14) – Children’s Education Allowance
- If you are a salaried employee, you may get a Children’s Education Allowance (CEA) from your employer.
- The exemption limit is ₹100 per month per child (maximum for 2 children).
- This is a small benefit but can be added along with the Section 80C deduction.
2️⃣ Section 80E – Deduction on Education Loan Interest
- If you have taken an education loan for your child’s higher studies, you can claim a deduction under Section 80E.
- There is no upper limit on the deduction. You can claim 100% of the interest paid on the loan.
- This benefit is available for higher education in India and abroad.
Key Takeaways
- Section 80C allows parents to claim tax deductions on children’s tuition fees.
- The maximum deduction is ₹1.5 lakh per year (including other 80C investments).
- Only tuition fees are covered—expenses like hostel, transport, and books are not eligible.
- Both father and mother can claim deductions for up to two children each.
- Keep fee receipts safe and submit them while filing your ITR.
- Other benefits like Children’s Education Allowance and Education Loan Deductions can help save more tax.
By using these tax-saving options wisely, parents can reduce their financial burden and plan better for their children’s education. So, if you are paying tuition fees, make sure you claim your deductions correctly and save more tax!
