Due to the high education fees make all to face a lot of economic issues. Be it is high or higher secondary education both will take half of the income. That is what makes all to look at the benefits of children’s education fees income tax in order to save money. Actually, there are so many numbers of benefits that will come under this.
If you are unaware of that then here come all the benefits you want to notice in the children’s education fees income tax.
What are the benefits of children’s education fees income tax?
Better benefit on fees:
The fees include both education as well as hostel. So you will be able to reduce the expense that you do on these things. For children’s education, you will be offered 100 and it is applicable for two children. At the same time for the hostel, you will be provided with 300 and that is also applicable for two children. You ought to offer proper documents in order to claim the amount.
Reduce tuition fees:
As an individual, you are allowed to claim a tax deduction for tuition fees that you pay for the university, college and some other institute. That is applicable for two children. Only you can claim tuition fees other than that you can’t able to claim the amount that you paid for the donation and other things.
Actually, the tuition fees deduction will come under Section 80C of the Income Tax Act. It will cover so many things such as deductions such as contribution to provident fund contribution (PPF), life insurance premium (LIP), subscription to savings certificate, sums paid towards at least 5-year term deposits with a scheduled bank, repayment of principal component of home loan and so on.
Deduction on education loan interest:
An individual is allowed to claim the deduction for interest that paid on the education loan that was taken for higher education as well as higher education specified relative such as spouse, children and even student) you must be alegal guardian for that individual.
The high education is the course that you choose to study after studied the Senior Secondary Examination or its equivalent, from any school, board or university recognized by the Central Government or State Government or local authority or by any other authority authorized by the Central Government or State Government or local authority.
This will come under Section 80E for the duration of 80 years under this section alone deduction will be able to claim.
Tax exception for scholarships:
The scholarships that you will get in order to fulfill your educational needs will be expected from the income tax under Section 10(16) of the Income Tax Act. These are the benefits that you will acquire by means of the children’s education fees income tax be it is any education to make use of this and reduce some amount on your expense. But remember it is only for education expenses not for the course that you do on part-time.