ITR filing: How to claim deductions even if you didn’t make tax saving investments in FY25

ITR filing: Besides school and college tuition fees, even your kid’s playschool, creche or nursery fees are eligible for the tax deduction under section 80C.

Missed investing in tax saving schemes such as equity-linked savings (ELSS), PPF (Public Provident Fund), and fixed deposits (FDs) covered by section 80 C? You can still avail of tax benefits and claim a refund on any excess tax deducted while filing your return for the financial year 2024-25 (assessment year 2025-26).

For one, if you are a salaried employee, your employee's provident fund (EPF) contribution, deducted from your salary every month, can come to your aid as this qualifies for deductions under section 80C.  Besides, this section's benefits are not confined to investments but also to certain expenses. For example, your children's tuition fees.

Deductions on expenses

Section 80C of the Income Tax Act offers tax breaks on school / college tuition fees paid for up to two children, subject to a maximum of Rs 1.5 lakh.

Also, even if the number of children is, say, three, both spouses can still maximise the tax benefits on offer since both partners have separate limits for two children each. In addition, even your kid’s playschool, creche, or nursery tuition fees are eligible for the deduction.

Also read: ITR filing: New income tax rules for 2024-25 to keep in mind before filing return

Ineligible expenses

While claiming this deduction, it is vital to know the education-linked expenses that are not eligible for such benefits. For example, any capitation, donation, and school bus fees will not qualify for the tax break.

The key word is ‘tuition’ fee – look for this element in your child’s fee receipt. However, expenses incurred on children’s education overseas cannot be claimed as a tax benefit under this section, though international universities based in India will be eligible.

Also read: How to build a Rs 1 crore education fund for your child in 10 years

Fees for extra-curricular activities, even if managed by the school, are not eligible. Also, the deduction is available only for full-time courses in formal educational institutions — part-time or distance learning fees will not be allowed. Likewise, fees for coaching classes will not be considered.