In the next financial year (2025-26), many taxpayers may decide to use the new regimen in place of income tax. The reason for this is the announcement for the new regimen in the union budget on 1 February 2025. Finance Minister Nirmala Sitharaman has imposed income tax-free of up to Rs 12 lakh annually in the new regimen. He has also made changes in the tax slab in the new regimen. If you have decided to use the new regimen, then you will have to change your tax-placing.
Decision is found in Old Reizim of Income Tax
Income tax is required more tax-saving in the old regimen of income tax. The reason for this is that deductions are found on many investments in this regimen. Taxpayers who want to take advantage of these deductions will have to remain in Old Rizim. Such people can claim deduction by investing up to Rs 1.5 lakh annually under Section 80C of Income Tax Act, 1961. Under this section, two children are also allowed to claim deduction on tuition fees of school-college.
Deduction on only tuition fees of school or college
If your children are studying in school or college, then you can claim deduction on tuition fees up to two children. There is a limit of Rs 1.5 lakh for this. This is such deduction, which taxpayers do not have to try separately to take advantage of it. Most people pay children’s fees. Tax experts say that this is a deduction that every parent should claim. There is not much formality for this.
Play school fees can also claim deduction
Even if your children study in playsks, cries or nursery, you can also claim this deduction. All you have to do is keep in mind that you can only claim deduction at tuition fees. Decision on second fees of school or college is not allowed. For example, if you give a capitation or donation to the school or pay the school bus, you will not be able to claim deduction on it.
What is the way to claim deduction?
If you do not want to miss the opportunity to claim deduction on tuition fees, then you will have to get a certificate of total tuition fees paid to the school or college in a financial year. Many schools charge fees for the entire financial year by January. You can ask for a certificate of tuition fee payment from the school after the last fee payment in January. Private companies ask their employees to submit this certificate by mid -January. If you are self -employed or do business, then you can claim the deduction on school fees while filing income tax returns of this financial year. This will reduce your tax liability significantly.