As a first-time tax filer in India, you can indeed claim tax benefits for certain education expenses. Here's what you need to know:
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Deductions under Section 80C
Under Section 80C of the Income Tax Act, you can claim a deduction for tuition fees paid for the education of your children. This deduction is available for up to two children and is subject to a maximum limit of Rs. 1.5 lakh per financial year. It is available only for full-time courses pursued in recognized educational institutions in India.
Eligibility Criteria
- The education expenses must be for your children's education.
- The educational institution must be recognized by the Central or State Government or any other competent authority.
- The education should be in a full-time course.
Documentation Required
- Fee receipts or bills issued by the educational institution for the tuition fees paid.
- Proof of enrollment or admission in the educational institution.
- Interest on Education Loan: If you have taken an education loan for higher studies, you can claim a deduction on the interest paid under Section 80E. This deduction is available for a maximum of eight years starting from the year in which you start repaying the loan.
- Scholarships and Grants: Scholarships and grants received for education purposes are generally tax-free and do not need to be included in your taxable income.
Ensure that the educational institution is recognized, and keep the necessary documentation handy to support your claim. Additionally, consider exploring other education-related tax benefits such as deductions on education loan interest and tax-free scholarships or grants.
Look up more articles here for a smooth first time tax-filing process. All the best!
