This time of the year, parents are planning for school admissions and students are preparing to go back to their classes with projects and assignments additionally, this year a Covid-19 situation has made students and their parents have to pay the school fees online. The school sends emails detailing how this will be done. We should understand that paying school fees provides tax relief and not forget to claim this as a deduction from taxable income. So, please keep your school fees receipts safe so that our tax experts get that deduction for you while filing your I-T R
You may be eligible for deductions against school fee payments: there are 80C deductions, among other things. School fees can count, along with insurance premia, PPF, EPF, FDR, NSC and so on. The aggregate limit for these is Rs1 lakh per financial year.. For example, your investments and payments in respect of insurance premium, EPF, PPF, etc., aggregate to ₹100,000/- and in this particular year you have paid school fees of about ₹60,000/-, you can claim ₹50,000/- from school fees as a deduction. In case, you have no other major deductions, you can claim entire school fees as a deduction from your taxable income.
Is this claimed for all children? The deduction is only applicable to school fees paid in respect of 2 children. If you have paid school fees for more than 2 children then you may claim the maximum aggregate amount in respect of any two children if you had paid school fees of ₹30,000/-, ₹40,000/- and ₹50,000/- for each of your three kids, for example. Then you may claim a deduction in respect of the total amounts across the board. This comes to around ₹90,000/- (₹40K+
What kind of fees can you claim as a deduction? Some schools might require that you make a contribution to the development or upkeep of the school, in addition to paying tuition. You can only claim a tuition deduction. Other fees, donations, or payments in kind are not deductible. However, you may want to ask the school if any of these additional expenses are eligible for a separate deduction under section 80G so you can claim them under that subsection in the future.
Is late fees included in tuition costs? No. Late fees are not calculated as tuition expense. Tuition is the amount sought by the institution from the student. Late fees are a penalty charge
Both of the parents can claim the deduction for school fees if one parent does not absorb all of the fee under their tax slab. For example, if both parents work full time and paid ₹2,50,000/- as tuition fees for their children. One parent can claim the maximum up to ₹1.5 lakhs while the other can claim to remain ₹1,00,000/- But the same amount of fees can not be claimed by both the parents.
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