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 to a recognized educational institution in India.
• The amount paid is within the allowable limit of ₹12,000 per annum.
• The assessee wishes to claim this amount as a deduction under Section 80C of the Income Tax Act.
• The payment has been made for self-education, not for children.
• The assessee seeks clarity on whether tuition fees paid for his own education qualifies for deduction under Section 80C.

2. Issues in the Case [Questions]

1. Does Section 80C of the Income Tax Act allow deduction of tuition fees paid for self-education?
2. Who are the eligible beneficiaries for whom tuition fees can be claimed?
3. What are the limitations and conditions associated with tuition fee deductions under Section 80C?
4. Is there any provision or judicial ruling that allows extension of this benefit to self, spouse, or dependents?

3. Legal Principles Covered

A. Section 80C(2)(xvii) of the Income Tax Act, 1961

Section 80C(2)(xvii) allows deduction in respect of:

“Tuition fees (excluding donation or development fees) paid 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 Points:

• Deduction is allowed only for tuition fees (not other charges like transport, hostel, or donations).
• It is specifically for the education of two children of the assessee.
• Self-education, spouse’s education, or education of other relatives is not eligible.
• Total deduction under Section 80C (which includes tuition fee, PPF, LIC, etc.) is capped at ₹1,50,000 per annum.

B. No Provision for Self-Education under 80C

• There is no clause in Section 80C that allows deduction for tuition fees paid for oneself.
• Any higher education benefit for self is only provided under Section 80E, and that too is limited to interest on education loan, not tuition fees.

C. Judicial Precedents and CBDT Clarification

1. CBDT Circular No. 8/2007 clearly mentions that deduction under Section 80C for tuition fees is available only for two children of the assessee.
2. In cases such as R.K. Agarwal v. ITO, courts have upheld that self or spouse education fees do not qualify under Section 80C.
3. Tribunal Rulings have confirmed that literal interpretation of Section 80C must be followed due to lack of ambiguity.

4. Possible Judgement / Advice

Based on the statutory language and supporting judicial principles:

• Tuition fees paid for self-education cannot be claimed as a deduction under Section 80C of the Income Tax Act, 1961.
• The deduction is strictly available for tuition fees paid for up to two children of the assessee.
• The assessee may not include this amount while calculating deductions under Section 80C.
• However, if the assessee has taken an education loan for self, then interest on that loan may be claimed under Section 80E, subject to conditions.