How to Claim Tax Deduction on Tuition Fees in India (Section 80C)

Ever wondered if the money you spend on your child’s school or college fees can help you save on taxes? You’re not alone. Many parents in India, whether they’re salaried professionals or small business owners, often miss out on this valuable benefit simply because they aren’t aware of how it works.

Think of it like buying mangoes from your local sabziwala—if you know which ones are ripe and worth the price, you get the best value. Similarly, knowing the right tax deductions—like those under Section 80C for tuition fees—can help you make smarter financial decisions without spending extra.

In this guide, we’ll walk you through everything you need to know about claiming tax deductions on tuition fees paid for your children’s education. You’ll learn:

• What kind of educational expenses are eligible
• Who can claim the benefit and for how many children
• Which kinds of tuition fees qualify for tax deduction
• Common mistakes to avoid (like claiming non-eligible fees or using the wrong tax regime)

Let’s get started!

Tuition Fees and Tax Benefits – What’s the Connection?

Let’s understand how you too can reduce your tax burden legally, simply by paying your child’s education fees wisely.

Tuition fees paid to a university, college, school or educational institution located in India for full time education are eligible for tax deduction under section 80C of income tax act, 1961.

Income tax deduction limit for tuition fees is within the overall limit of section 80C. For the financial year 2024-25 (Assessment Year 2025-26) and financial year 2025-26 (Assessment Year 2026-27), overall income tax deduction limit of section 80C is Rs 1, 50,000.

To get eligible for income tax deduction on tuition fees, taxpayer is required to satisfy following conditions as specified in section 80C.

What Kind of Education and Institutions Qualify for tax deduction U/S 80C?

As per section 80C, in order to get eligible for income tax deduction, tuition fees must have been paid for a full-time education, including for any play school activities, pre-nursery and nursery classes. You can refer circular number 9/2008, 8/2007.

Full-time education includes any educational course offered by any university, college, school or other educational institution to a student who is enrolled full-time for the said course. It is also clarified that full-time education includes play-school activities, pre-nursery and nursery classes.

Tuition fees must have been paid to any registered university, college, school or any other educational institution based in India.

Such educational institution can be a private or government sponsored institute.

What Counts as Eligible Education?

Under Section 80C, the tuition fees must be paid for full-time education. That includes everything from:

• Play school or pre-nursery
• Nursery and primary classes
• Higher secondary school
• College or university (graduate or post-grad)
• Any recognized full-time course

Think of “full-time education” as your child going to a regular school or college—not weekend coaching or hobby classes.

What Kind of Institutions Are Allowed?

The tuition fees must be paid to:

• A registered school, college, or university
• Located in India
• Can be private or government-run

So, whether your child studies at a municipal school in Lucknow or a high-end private university in Bangalore, both qualify—as long as it’s full-time and recognized.

What’s Not Included?

Just because a payment is made to a school doesn’t mean it qualifies. The following do not count as tuition fees:

• Development charges
• Donation or capitation fees
• Late fees or penalties

For example, if you paid ₹5,000 as a donation to reserve your child’s seat, that amount cannot be claimed.

You don’t need to limit this benefit to just school or college fees. Even tuition paid to a recognized play school counts—so your little one’s nursery fees could be saving you money!

Who Can Claim tax deduction on tuition fees and for How Many Children?

Tax deduction on tuition fees under section 80C can be claimed only up to two children.

If both parents are paying tuition fees, then both of them will be eligible based on the actual amount paid.

For instance, if you have 3 children then one person can avail tax deduction on tuition fees under section 80C for 2 children and other person can take benefit for the third one. You can plan according to your total income and applicable income tax rates.

Example

If total tuition fees paid for 3 children during the financial year 2024-25 (Assessment year 2025-26) is Rs 2, 00,000 and you want to claim the entire expenditure under section 80C as tax deduction then you can do so only when both parents have paid it.

If husband has paid Rs 1,50,000, then he can claim tax deduction of Rs 1,50,000 for the financial year 2024-25 (assessment year 2025-26) and wife can take tax benefit of Rs 50,000 under section 80C by paying it to the institution. Provided all other conditions of section 80C are satisfied.

Remember, to get tax deduction under section 80C, you must have paid tuition fees during the financial year. You will not be eligible for the tax benefits of section 80C if its not paid.

Let’s meet Menka and Ravi, a working couple in Ahmedabad. They have three children and both contribute to their kids’ tuition fees. Menka asks, “Can we both claim tax deductions?” The answer: Yes, but there are a few rules.

• The tax deduction is available to parents only—either father or mother, or both, depending on who actually paid the fees.
• Grandparents or guardians cannot claim the benefit.
• The person claiming the tax deduction must have paid the fee themselves, not just supported the child indirectly.

So, if Ravi pays ₹75,000 and Menka pays ₹75,000 for their children’s fees, both can claim it separately under their own Section 80C limits.

How Many Children Are Covered?

• You can claim tuition fee tax deduction for a maximum of 2 children.
• If both parents are taxpayers, each can claim for 2 children separately.

So, for a couple with 3 kids:

This means they can still enjoy tax benefits for all three children—by smartly splitting the payments.

Plan ahead as a couple. If you have more than 2 children, divide who pays which child’s fees. This way, you both can maximize the tax benefit under Section 80C.

How Much Can You Actually Claim?

Now that we know who can claim and for whom, let’s answer the big question: “How much tax deduction can I get for tuition fees?”Let’s go back to Ravi, our kirana shop owner. He pays ₹1,80,000 per year for his two kids’ tuition. He thinks he can claim it all—but here’s where the Section 80C limit matters.

Now that we know who can claim and for whom, let’s answer the big question: “How much tax deduction can I get for tuition fees?”

Let’s go back to Ravi, our kirana shop owner. He pays ₹1,80,000 per year for his two kids’ tuition. He thinks he can claim it all—but here’s where the Section 80C limit matters.

What Is the Maximum Tax Deduction Limit?

The tuition fee tax deduction is part of the overall Section 80C limit of ₹1,50,000 per financial year. That means:

• You can claim only up to ₹1,50,000 total, even if your tuition fee is more than that.
• This ₹1,50,000 includes all other investments and expenses under Section 80C.

What Else Falls Under Section 80C?

If you’re already investing in any of the below, they’ll also eat into your ₹1,50,000 limit:

So, if Ravi already invested ₹1,00,000 in PPF this year, he can only claim ₹50,000 more under Section 80C—including for tuition fees.If you pay tuition fees for more than 2 children, you can still get full benefit—if your spouse claims for one or two of them separately. It’s all about who pays and how you plan it.

What tuition fees are tax deductible U/s 80C?

Only tuition fees out of the total fee paid by you will qualify for tax deduction.

It is clarified vide circular number 17/2014, dated December 10, 2014, that the amount allowable as tuition fees shall include any payment of fee to any university, college, school or other educational institution in India except the amount representing payment in the nature of development fees or donation or capitation fees or payment of similar nature.

This means, payments like development fees or donations or late fee or capitation fees or payment of similar nature does not qualify for tax deductions under section 80C.

Payments That Don’t Qualify

According to Income Tax rules (clarified in Circular No. 17/2014), only the tuition fee portion of your total school or college bill is eligible for tax deduction.

Here’s what’s not allowed:

• Development fees
• Donation or capitation fees (often paid to reserve a seat)
• Late payment charges
• Transport, hostel, or extracurricular fees

Example:

Suppose Menka, a bank employee, pays the following to her daughter’s school:

So, Menka can claim a tax deduction of ₹60,000 only—not the full ₹87,000 she paid. Ask your child’s school or college to give a detailed fee receipt that clearly separates tuition from other charges. This makes it easy to claim the right amount during tax filing.

Old vs New Tax Regime – Which One Lets You Claim Tuition Fees?

Imagine Sanjay, a salaried employee in Delhi, chose the new income tax regime last year because it offered lower tax rates. But at tax time, he found out he couldn’t claim tuition fees under Section 80C. Why? Because of the tax regime he selected.

Let’s break this down.

Two Tax Regimes in India

Since FY 2020-21, the Indian government offers two tax systems:

• Old Tax Regime – Higher tax rates, but with deductions and exemptions
• New Tax Regime (Section 115BAC) – Lower tax rates, but no deductions (with very few exceptions)

If you want to claim tuition fees under Section 80C, you must be under the old tax regime.

If you file taxes under the new regime, you will not get:

• Tax Deduction for tuition fees
• PPF, LIC, ELSS benefits
• HRA (House Rent Allowance)

So, choosing your regime isn’t just about tax slabs—it’s about what benefits you want.

If your tuition fee expenses and other tax deductions under Section 80C cross ₹1,50,000, you might save more tax in the old tax regime—even if the rates look higher at first glance. Always compare both before filing!

Conclusion

Paying for your child’s education is one of the most meaningful investments you can make—and now you know it can also help you save on taxes. By understanding how tax deduction on tuition fees in India works under Section 80C, you’re not just being a responsible parent, but also a smart taxpayer.

Whether you’re a salaried professional, a small business owner, or managing your household budget, taking advantage of these tax benefits can make a real difference. You’ve learned who can claim, what counts, how much you can save, and how to avoid common mistakes—all in simple, clear terms.

Don’t worry if you’re still learning—you’re not alone on this journey. Every financial expert once started with the basics, just like you. So take that next step: review your tuition payments, talk to your school for detailed receipts, and plan your 80C investments wisely.

Please note, section 80C tax deduction is available to you if you have opted to pay tax based on old tax regime. If you have opted for new tax regime under section 115BAC, then benefits of section 80C will not be available. Which means tax deduction on tuition fees under section 80C will not be available to you if you have opted for new tax regime under section 115BAC.

Frequently Asked Questions (FAQs)

Can I claim tax benefits on school fees for my child?

Yes, you can claim a tax deduction under Section 80C for tuition fees paid to a recognized school, college, or university in India. The course must be full-time and the institution should be located in India.

Can I claim fees for more than two children?

No, each parent can claim tuition fees for a maximum of two children. However, if both parents are taxpayers, each can claim separately for two children if they have more than two kids.

Are donation and admission fees also covered under Section 80C?

No, only the actual tuition fee is eligible. Payments like donations, capitation fees, development charges, or transport fees are not allowed as tax deductions.

Do nursery or play school fees qualify for tax deduction?

Yes, fees paid for pre-nursery, nursery, and play school are eligible, as long as it’s full-time education at a recognized institution.

Can I claim tuition fee tax deduction if I’ve opted for the new tax regime?

No, the new tax regime under Section 115BAC does not allow tax deductions under Section 80C, including tuition fees. You must opt for the old regime to claim this benefit.

Here are few investments eligible for section 80C tax deduction within the overall limit of Rs 1,50,000 for the financial year 2024-25 (assessment year 2025-26) and financial year 2025-26 (assessment year 2026-27);

• Life insurance premium paid
• Contribution to Public provident fund or PPF
• Contribution to employee provident fund or EPF
• Sukanya Samriddhi Yojana Scheme – SSY
• ULIP
• ELSS
• Principal re-payment of home loan