Tuition fee exemption under section 10

Comments ITR Filing 2023: Individual taxpayers are now busy filing their ITRs as only a few days are left for the deadline to end for the purpose. They are scrambling to organise their financial paperwork and maximise their tax savings these days. Apart from the usual tax saving investments, many tax payers might not be knowing that there are several other exemptions and deductions available to claim while filing ITR 2023. Check top 10 lesser-known exemptions that you can claim under various sections of Income Tax Act. Read More: Preventive Health Check-up Individual taxpayers can claim a deduction of up to Rs 5000 on preventive check-ups for self, dependent children, spouse, and parents. This can be claimed under Section 80D of the Income Tax Act. Life Insurance Taxpayers can claim deduction on amount that was received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempted from tax under Section 10(10D), subject to certain conditions. Expenses For Dependents You can also claim deductions on expenses incurred on children, parents, and other dependents under sections ranging from 80C to 80U. Read More: House Rent Allowance If you are staying in a rented house, you can claim tax exemption on HRA under Section 10 (13A) of the Income Tax Act. You can claim this exemption on actual HRA received, or actual rent paid less 10 per cent of salary, or 50 per cent of basic pay in metro cities (40 per cent for non-metro), whichever is lowe...

• • • Tuition Fee, Education Loan, HRA: 10 Tax Exemptions You Can Claim While Filing Income Tax Return Tuition Fee, Education Loan, HRA: 10 Tax Exemptions You Can Claim While Filing Income Tax Return ITR Filing 2023: You can claim a deduction on the interest paid on education loans under Section 80E. You can also claim Leave Travel Concession exemption under Section 10(5) for expenses incurred on travel of an individual and his family when on leave, subject to certain conditions. ITR Filing 2023: Individual taxpayers are now busy filing their ITRs as only a few days are left for the deadline to end for the purpose. They are scrambling to organise their financial paperwork and maximise their tax savings these days. Apart from the usual tax saving investments, many tax payers might not be knowing that there are several other exemptions and deductions available to claim while filing ITR 2023. Check top 10 lesser-known exemptions that you can claim under various sections of Income Tax Act. Expenses For Dependents You can also claim deductions on expenses incurred on children, parents, and other dependents under sections ranging from 80C to 80U. House Rent Allowance If you are staying in a rented house, you can claim tax exemption on HRA under Section 10 (13A) of the Income Tax Act. You can claim this exemption on actual HRA received, or actual rent paid less 10 per cent of salary, or 50 per cent of basic pay in metro cities (40 per cent for non-metro), whichever is lower. Post...

Tuition fees paid by parents for their kid’s education come with tax benefits. The amount paid as tuition fees qualifies for tax benefit under section 80C up to a maximum limit of Rs 1.5 lakh per annum. It means, under income tax rules you are allowed to deduct the fee amount from your gross total income, thus reducing the taxable income. Effectively, you pay a lower tax than before if you are paying tuition fees for your children. But, before you take advantage of tuition fee in your income tax return, ensure they are eligible for tax benefit under section 80 C. As per the rules, they have to be a full-time education, including any play school activities, pre-nursery and nursery classes. The institution can be either private or a government sponsored one. Further, tuition fees paid at the time of admission or anytime during the financial year to any university, college, school or other educational institution qualifies for tax benefit. The educational institution has to be based in India. Any payments, other than tuition fees, to the educational institutions will not be eligible for tax benefit. For example, payments like development fees or donation or capitation fees, etc., are not covered and do not qualify for tax benefit. Also, if parents have failed to pay tuition fees on time, the applicable late fee paid will not be eligible. 5 tax planning mistakes that can cost you dearly Importantly, the tax benefit on tuition fee applies for the fees paid for up to two childre...

Education is one of the most important investments that parents make for their children. However, the cost of school fees and related expenses can be a significant financial burden for families. To alleviate some of this financial pressure and to promote literacy, government offers a tax deduction on tuition fees paid for children. In this article, we will explore the tax benefits offered on children's tuition fee, the eligibility criteria, and how to claim them. The tax benefits offered on children's education are as follows: • Childrens' Education Allowance • Hostel Expenditure Allowance • Tax deduction on tuition fees Exemption for Childrens' education and Hostel Expenditure The following exemption* is provided to a salaried taxpayer in India: • Childrens' Education Allowance: INR 100 per month per child up to a maximum of 2 children. • Hostel Expenditure Allowance: INR 300 per month per child up to a maximum of 2 children. (*Only if expenses are incurred in India as per Section 10(14) of the income tax act) Deduction on Tuition Fees under section 80C A parent can claim a deduction on the actual amount paid as tuition fees to a university, college, school or any other educational institution. Other components of fees, like development fees and transport fees, are not eligible for deduction under Section 80C. In a financial year, individuals can claim a maximum deduction of Rs 1.5 lakh for payments made towards tuition fees, along with deductions for items such as insura...

It is better to plan your income tax liability in advance. If you are in employment you can plan your income for maximum tax benefits. One of the main expenditure that you can claim as a deduction is tuition fee you pay for your children. You can take double benefit for your child's education. First under section 10, you can structure your salary by including child education allowance. Again under section 80C you can claim tuition fee paid for your children. Deduction under section 10 for Child education allowance Plan your salary structure to lower your tax liability. Normally you have your salary structure in the popular brackets such as Basic Salary, DA, Conveyance, HRA etc. One of the less popular but allowed deduction is education and hostel allowance for your child. Education allowance up to 2 children is allowed. The limit under section 10 for child education allowance is Rs. 100 per child per month. So if you have 2 children you can claim deduction of Rs. 2400 per year. Further if you child is staying in hostel, you can claim Hostel allowance up to Rs. 300 per month per child. Again you can claim deduction of Rs. 7,200 per year. Note that child education allowance is allowed if you have actually incurred these expenditure. Deduction under section 80C for tuition fee paid You can claim deduction under section 80C for tuition fee incurred on educating your child. The deduction is allowed up to 2 children. What is tuition fee? Tuition fee is the fee incurred on educat...

Follow us on Telegram The Income Tax Department introduced several tax benefits on education to promote education and literacy among the public. These benefits assist in decreasing the amount of your taxable income, hence lowering the amount of tax you must pay. The Indian government exempts tuition fees paid by individuals for the education of their children from taxation. Furthermore, for certain salaried individuals, paying their children’s education fees may be a component of their pay structure. Table of Contents • • • • • • • • • Parents are facing a major financial strain as the expense of school continues to rise year after year. Fortunately, the Income Tax Act of 1961, enacted by the Indian government, contains features that make it easier for taxpayers. You would be eligible for tax benefits if your company gives you a children’s education allowance as part of your salary structure for the payment of your children’s education or tuition fees. You could also claim a tax deduction for your child’s tuition fees under Section 80C of the Income Tax Act of 1961. Fees paid for your children’s education can be claimed as deductions under two different parts of the Income Tax Act – Section 80C Tax Deduction and Section 10 Tax Exemption (14). Section 80C Tax Deduction You could also claim a tax deduction for the college tuition portion of the payment made toward your child’s educational expenditures in the financial year for up to two children in addition to the children’s...