Section 80C and tuition fees, FY 2026-27
Under Section 80C of the Income Tax Act, 1961, a parent can claim a deduction on tuition fees paid for up to two children. The total deduction limit under 80C is ₹1,50,000, which is shared with PF contributions, life-insurance premiums, ELSS investments, NPS Tier-1 contributions, and home-loan principal. Tuition fee is one slice of that combined limit for most families.
Tax regime note: Section 80C is available only under the old tax regime. Salaried employees who opt into the new regime under Section 115BAC cannot claim 80C, including tuition. Confirm your regime choice with payroll before the financial year starts.
Children Education Allowance, Budget 2026 update
Separate from 80C, salaried employees can claim a Children Education Allowance (CEA) under Section 10(14). The Budget 2026 raised the rate from ₹100/month to ₹3,000/month per child, for up to two children, a combined annual exemption of ₹72,000 per taxpayer. The Hostel Expenditure Allowance was raised in parallel from ₹300/month to ₹9,000/month per child (up to two children, capped at ₹2,16,000/year). Combined CEA + hostel for two children in hostel: up to ₹2,88,000/year. Effective FY 2026-27 onwards, available under the old tax regime. This sits on top of the 80C tuition deduction, a parent can use both simultaneously.
What qualifies, and what does not
Only tuition fee paid to any university, college, school, or other educational institution situated in India for full-time education qualifies. The following are explicitly excluded:
- Development fee and capitation fee
- Transport / bus fee
- Hostel fee and mess fee
- Library fee
- Annual activity fee
- Sports fee and uniforms
- Donations to the institution
- Late fee and re-admission fee
This is why our receipt splits each fee head onto its own line: your HR or CA will only pick up the tuition figure for the 80C claim.
Institutions that qualify
The institution must be situated in India and offering full-time education. Part-time courses, coaching classes, and tutorials do not qualify. Foreign-educated children (studying abroad) do not qualify, Section 80C applies only to institutions located in India.
Who can claim
Only the parent actually paying the fees can claim the deduction. If both parents split the fees, each can claim their portion. You can claim for up to two children per taxpayer; if you have three or more children, one parent claims for two and the other parent for the third.
Adult and professional courses
Fees paid for your own education, or for the education of a spouse or dependent sibling, do not qualify under 80C. For working-age education, look at Section 80E instead, which covers interest on education loans for higher education (self, spouse, children, or legal guardian), but that's an interest deduction, not a fee one.
Form 12BB and supporting documents
Salaried parents submit a Form 12BB to their employer each year declaring tax-saving investments. For the tuition-fee claim, attach the school's receipt showing the tuition portion clearly. Most employers accept consolidated annual receipts; some insist on term-wise. Keep both handy during the fee-reimbursement / declaration window (usually November-January).
PAN of the school
Schools charging total annual fees above ₹1 lakh per student should quote their PAN on the receipt, not legally mandatory for 80C claim, but expected by employer HR teams for audit trails. Government schools, unaided schools, and registered trusts all have PANs.
Common mistakes
- Claiming the full fees, not just tuition, under 80C. Your CA or the tax department will disallow the non-tuition portion.
- Claiming for a third child. 80C caps at two.
- Claiming fees paid to coaching institutes or tutorials. Not eligible.
- Claiming for an abroad-educated child. Only India-situated institutions qualify.