Yes, there are tax benefits available on school fees in India.
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Section 80C Deduction
Under Section 80C of the Income Tax Act, parents can claim a deduction on tuition fees paid for their children's education. This deduction falls under the overall limit of Rs. 1.5 lakh per financial year. This deduction is applicable for tuition fees paid to any recognized educational institution, both pre-primary and higher education expenses in India for up to two children. However, it does not cover other expenses such as transportation, hostel fees, development fees, or donations.
Limitations
The deduction is available only for individuals who are paying the tuition fees for their own children. It does not apply to fees paid for siblings, nephews, nieces, or other relatives. Additionally, the deduction is not available for self-education or professional courses pursued by individuals themselves.
Combined Deduction
The deduction on tuition fees falls within the overall limit of Rs. 1.5 lakh available under Section 80C. This means that if you are already claiming deductions for other eligible expenses like provident fund contributions, life insurance premiums, or home loan principal repayment, the tuition fee deduction will be part of the same limit.
Year of Claim
The deduction can be claimed in the year in which the tuition fees are actually paid, regardless of the academic year to which they relate. For example, if the fees for the upcoming academic year are paid in advance, the deduction can be claimed in the financial year in which the payment is made.
It is important to consult a tax professional or refer to the latest tax laws and regulations to understand the specific eligibility criteria and any changes in the tax benefits on school fees. Proper record-keeping and adherence to tax guidelines will ensure that you can avail the applicable deductions and optimize your tax planning effectively.
