Tuition fees comes under which section

Anthony Battle is a CERTIFIED FINANCIAL PLANNER™ professional. He earned the Chartered Financial Consultant® designation for advanced financial planning, the Chartered Life Underwriter® designation for advanced insurance specialization, the Accredited Financial Counselor® for Financial Counseling and both the Retirement Income Certified Professional®, and Certified Retirement Counselor designations for advance retirement planning. • 529 plans are tax-advantaged accounts that can be used to pay educational expenses from kindergarten through graduate school. • There are two basic types of 529 plans: educational savings plans and prepaid tuition plans. • 529 plans are sponsored and run by the 50 states and the District of Columbia. The rules and fees of 529 plans can differ by state. • 529 plans can be purchased directly from a state or via a broker or financial advisor. • Starting on Jan. 1, 2024, up to $35,000 of leftover funds in a 529 account can be rolled over into a Roth IRA account, if the fund is at least 15 years old. There are no limits on how much you can contribute to a 529 account each year. However, many states put a cap on how much you can contribute in total. Those limits recently ranged from $235,000 to over $525,000. Tax Advantages of 529 Plans Withdrawals from a 529 plan are exempt from federal and state income taxes, provided the money is used for qualified educational expenses. Advantages Disadvantages High contribution limit Limited investment options Fl...

Q. Is the income earned from trading in futures and options (F&O) considered capital gain? Can I offset the losses from F&O and get deduction for the tax I have paid? — Ravi Sehgal A. The profit from derivative trading such as futures and options will come under the head 'Income from business and profession'. As for the loss suffered in derivative trading, it can be offset against the profit made in equity trading, and vice versa. Also, as this income comes under the head 'Business income', it is taxable at the normal rates applicable to an individual. The securities transaction tax (STT) paid on F&O trading can be claimed as a business expense from the profits. This tax cannot be claimed as an expense by an individual who trades in shares but has profits from equity trading taxed under the head 'Capital gains'. Q. I am planning to buy a house jointly with my wife. She will be taking a loan from a bank, while I intend to take one from my father at a nominal interest. Can both, my wife and I, claim home loan rebates? — Devendra Mishra A. Yes, both you and your wife can claim home loan rebates. The loan repayment comprises two parts-principal and interest. The repayment of principal is allowed as deduction under Section 80C up to a maximum of Rs 1 lakh. But this deduction is not available if the loan is taken from an unrecognised financial institution. So, no deduction will be allowed for the principal that you repay your father. The interest paid on the loan is deductible u...

Claiming of tuition fees is a part of tax deduction under section 80C of Income Tax Act. The total maximum amount limit allowed under 80C is Rs.1,50,000 (Including of 80CCC and 80CCD), under this section individual can claim maximum of 2 children actual fees paid during the financial year. Example, during the financial year Mr.Raj has paid of Rs.40,000 towards his elder son college fees and Rs.20,000 paid for his younger son school fees. Now Mr. Raj can claim both the fees of Rs.60,000 from Income Tax. The following conditions should meet to avail tuition fee exemption u/s 80C • Tuition fee should be paid for full time course educational institutes such as schools, universities, colleges etc. • If tuition fee is paid for play school and day care is also allowed under this sections as deduction. • The tuition fee deduction is available for maximum of 2 children • Individual tax payer can claim tuition fee deduction for adopted child education. The following payments are not allowed under tuition fees as deduction • Payment made for part time courses • Fees paid to any private coaching centre or tutor • The tax deduction will not be considered in case of payment made for development fees, donation, library charges or mess charges. • Deduction is not available if fees paid to foreign university located outside India. Education and Hostel Expenditure Allowances Exemption • Education allowance of Rs.100 per child is exempted from tax and for maximum of two children per month. •...

We have noticed that Drawing and disbursing officers (DDO) /Employers are generally not entertaining the claim of employee regarding payment of Tuition fees for full time education of their children as a whole under section 80C. They are allowing only the the fees which has been shown as with title "Tuition fees " in fees receipt issued by educational institutes . Any sums paid or deposited in the previous year by the assessee • (xvii) As tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter, • (a) to any university, college, school or other educational institution situated within India; • (b) for the purpose of full-time education of any of the persons specified in sub-section (4); Schools ,colleges are generally charged various type of fees from student like admission fees , practical fees , exam fees , computer class fees, building fund and tuition fees . The "Tuition fees "word used in School/ colleges and used in section 80C has different meaning and Later have wider meaning/scope. • [message] • Tuition fees, whether at the time of admission or thereafter, 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 employee. • Full-time education includes any educational course offered by any university, college, school or other educational institution to a student who is ...