32. Under 80 C of IT Act exemption for tuition fees paid to any college or school can be claimed to an extent of Rs.12,000 per annum, for two children, clarify whether any tuition fee paid for self-education can also be claimed as deduction under above section (80C)

1. Facts of the Case

• The assessee has paid tuition fees for educational purposes.
• The total amount claimed is within ₹12,000 per annum.
• The fees have been paid to a college or school, and the assessee intends to claim the deduction under Section 80C of the Income Tax Act.
• The question is whether tuition fees paid for self-education (i.e., the assessee’s own education) can be claimed under Section 80C.
• Additionally, clarification is sought on whether such a deduction is limited to fees paid for children, and if any exceptions exist.

2. Issues in the Case [Questions]

1. Is tuition fee paid for one’s own (self) education eligible for deduction under Section 80C?
2. What are the eligible conditions under Section 80C for claiming tuition fee deductions?
3. Are there any restrictions on the number of children or type of institution?
4. What is the maximum amount of deduction, and how is it apportioned?

3. Legal Principles Covered

A. Section 80C(2)(xvii) – Deduction on Tuition Fees

Under Section 80C(2)(xvii) of the Income Tax Act, 1961, an individual can claim deduction for:

“Payment of tuition fees (excluding development fee/donation/capitation fee) to any university, college, school or other educational institution situated in India, for the purpose of full-time education of any two children of the individual.”

Key conditions for eligibility:

• The payment must be for tuition fees only.
• Must be made to a recognized educational institution in India.
• The deduction is available only for full-time education.
• It is allowed for a maximum of two children of the assessee.
• The maximum deduction under Section 80C (including all eligible investments and expenses) is ₹1,50,000 per annum.

B. No Deduction for Self-Education

Section 80C does not allow deduction for:

• Tuition fees paid for self-education.
• Tuition fees for spouse or any other dependent (besides two children).
• Private coaching, part-time education, or foreign institutions.

Therefore, any tuition fees paid by the assessee for his/her own higher education is not deductible under Section 80C.

C. Relevant Clarifications and Judgements

1. CBDT FAQs and Circulars: Clarify that only fees paid for children’s education qualify under 80C.
2. R.K. Agarwal v. ITO (ITAT Jaipur): Reinforced that tuition fees paid for spouse or self are not allowed under Section 80C.
3. Circular No. 8/2007: Reiterates that the benefit is for maximum two children only, not for self or spouse.

4. Possible Judgement / Advisory

Based on the statutory provisions and case laws:

• Tuition fee deduction under Section 80C is available only for the education of up to two children of the assessee.
• The deduction is not available for tuition fees paid for self, spouse, or more than two children.
• Even if the fee is paid to a valid institution in India for full-time education, the claim will not be admissible unless it is for the assessee’s children.