Tax Benefits On School Fees – This period of year, parents are busy preparing for admission to a school of their choosing, and students are busy preparing their bags and concentrating on test and homework. This year, however, the condition of the Covid-19 allowed them have access to their school via internet. School fees have had to be charged and families receive e-mails about this. We should recognize that charging school tuition lowers the tax burden and therefore we should never hesitate to say this as a deductions from taxable income. But please try to keep the student fees receipts secure so that our tax professionals get the deduction when submitting your I-T return.
So what is the Maximum Tax Benefits On School Fees that you can get?
You must’ve read of the 80C deductions. Yeah, huh? School fees are among the elements of these insurance rate exemptions, PPF, EPF, FDR, NSC, etc. The overall cap for these combined contributions and payments is 1.50,000/-. As a instance, your savings and payments in support of insurance premiums, EPF, PPF, etc., sum to 100 000/-and in this specific year and you have spent around 60,000/-can on school tuition then claim 50,000/-from tuition fees as a deduction. If you do not have any other big deductions, you can take all school fees as a deductible in your tax liability.
How many children are eligible?
This deduction could be obtained on education fees charged only for 2 kids. Whether you have charged tuition fees for even more then 2 children, you can demand the full lump sum for just about any 2 kids. For example, if you still have 3 kids but you only paid school fees of $30,000/-, $40,000/-and $50,000/-for each, separately. You can then demand a deduction for a maximum of Rs. 90 000/- (Rs.40,000+ Rs.50,000).
What type of fees can be claimed as deduction?
Through admission or even during the year, the school will ask you to donate gifts for the construction of the campus, the construction fund or any other contributions, etc., in addition to the fees for the school. One can demand a deduction mostly in consideration of school fees but not in consideration of any charges or donations. Even so, you may contact the school if such transactions are qualified for the 80 G deduction so that you really can assert that exclusion specifically in your I-T deduction.
Will late fees be included?
No, no. Collection of late fees is not a school charge. The school fee seems to be the sum that is consistently demanded from the students by both the school. Late fees are a criminal offence.
Can both the parents (mother & father) claim the deduction separately?
Both parents will assert the deduction if the sum of school fees charged is not absorbed with one parents for both the purpose of deductions. For example, since both parents have jobs and paid 2,50,000/-as fees for their kid. The full money may be claimed by only 1 parent, maximum of 1.5 lakhs and the left over amount may be claimed by another parents as a reduction. However, the very same amount of payments can not be reported by both parents.