Section 10(14) of the Income Tax allows exemption from taxable income in respect of Children education allowance and Hostel Allowance. Also, Section 80C allows deduction from taxable income in respect of Tuition Fee for children. Let’s find out how you can save tax with tuition and hostel fees
As per section 10(14), tuition fees can be claimed as an exemption
As per section 10(14), Hostel fees can be claimed as an exemption
As per section 80C, Tuition fee can be claimed as a deduction
Section 80C – Deduction on Tuition Fee – Conditions for eligibility
With tuition and hostel fees, you can get
Now, let’s use the income tax calculator to see how much tax you can save with school and hostel fee for your children.
Step 2: Key in your salary details
Step 3: Declare your investments
Step 4: Now, calculate income tax
As per the calculation, you have a total tax liability of INR 140001
Step 5: Declare your Education Expenses
Step 6: Specify the number of children
Step 7: Calculate Income Tax again
As you see, the total tax liability has come down to INR 99137
As you see, you can make tax savings for upto INR 40864 with school and hostel fee for your children. If you have 4 children, you and your spouse can claim benefit for two children each. Remember to save school and hostel fee receipts.
Leave A Comment
You must be logged in to post a comment.