Education has the capacity to rectify the life of the people with quality. Some advantages are also given to the assessee by the government for the education prospectus. In this discussion, there is an explanation about the advantages of education furnished by the income tax laws in India.
Full-time Education in India Deduction Under Section 80C
One can avail up to Rs 1.50 lakh for each year towards the tuition fee furnished for the maximum of 2 children towards the full-time education in India. However, the available deduction is on the combination of eligible items and not exclusive for such as “provident fund contribution and PPF, home loan repayment, life insurance premium, and others”. “This advantage is available for education in any school, college, university, or any other educational institution in India”. From the start, it only covers the expenses for full education, the payments furnished to the coaching institutes or classes have not been subjected to the deduction.
This deduction is only towards the tuition fee and on the other side, the other payments such as any donation or as the development fee in whatever name it is said to be paid are not subjected to the same deduction. Towards the circumstances that if you have more than two children on which you are claiming for full-time education then you can choose any two children out of total. But if your partner is also working then the other parent can also avail of the deduction for the other children. If in case the fee furnished for the 2 children is more than Rs 1.50 lakh which is the set limit then the excess fees can be availed through the other parent.
There is no restriction upon both the parents who avail the deduction for the same children however deduction more and once shall not come under the permission towards the same expenditure. You must know that the deduction beneath section 80C is open for full-time education so the same deduction shall not be availed towards any other case. Along with that, this deduction is available for the education of India so you shall not avail of the deduction for the furnished fee towards the education other than the country.
Education Loan Interest Tax Advantages
Moreover, towards the mentioned advantages of the tuition fee the individual can avail deduction for the interest filed on the education loan opted to finance the higher education of the specific relatives beneath section 80E. The higher education towards the goal reveals that any educational course opted post to the finish of the senior secondary examination. You can avail yourself of the same advantage for your own or for your partner and to any child of yours. You can avail of the deduction towards your child for whom you are the legal parents.
The same dedication can be availed for 8 years straight beginning from the year you started paying for your loan. You must note that this deduction can be availed upon the grounds of the payment. Hence towards the concern, if you file the arrear of the interest on your education loan towards the specific year you shall be enabled to avail of the interest filed for the year no matter to which year you start paying the interest. Excluding a home loan to which you can avail the deduction to the mentioned boundary, there will be no financial limit to avail the deduction for the interest upon the education loan.
Also, the part-time and the full-time courses are eligible for the deduction claim on the education loan apart from the deduction under Section 80C for tuition fees. It is good to note that the same deduction is open towards the loan opted towards education all across the world, excluding the deduction for the tuition in which the educational institution is located in India.
To claim the deduction and be liable to be eligible for the same the loan needs to be chosen either from the financial institution or any permitted charitable institution. A bank or any other institution approved by the government comes beneath the financial institution from which you can take the loan. The charitable institution must be acknowledged by the government. So if any individual bootstraps the money for the education he is not eligible for the claim.
Beneath section 80E and for the tuition fee filed beneath section 80C the person can avail the deduction towards the interest if he opts for the education loan for full-time education in India.
Exempt Allowance for Salaried Individuals
Moreover, towards the above-mentioned 3 advantages that are open for all the assessee whether a person is a salaried or self-employed then under the statutory laws, he is permitted towards the privilege of the specific allowances provided through the employer to an employee. The initial exemption is the allowance for education obtained from your employer up to Rs 100 per month with respect to 2 children.
Another exemption is the hostel allowance furnished by the employer which is the highest rate at Rs 300 for every child limited to 2 children only. It is essential to find out that these allowances shall be treated as the exemption in case the employer has granted the expenses apart from the allowance. Also, you shall not avail of these exemptions unless these allowances shall be provided as a component of your salary by your employer.
The mentioned article shall assist you with a good understanding of the tax advantages towards education.
