Click to play videoLudhiana: Most middle class parents want better government support to cover the rising costs of their children's education. However, tax breaks on tuitions fees are currently clubbed along with other investments under section 80 C of the Income Tax act. Many feel that a Rs 1,00,000 exemption limit just doesn't cover it.
The Singh’s in Ludhiana are one among many families for whom education is literally a byword. Parneet Singh teaches economics at the Ludhiana Khalsa College and his wife Navjot is also a primary school tutor. It does come as a surprise that family is currently worried about the cost of educating of their two children.
16-year old Arshit and 13-year old Rhythm study in a private school in Ludhiana. A year's tuition fee works out to over Rs 70,000 and after adding the cost of books, school buses, lab fees, laptops and private coaching, the total comes up to over Rs 1,50,000.
“Gone are the days when education was not very expensive in government schools. Today parents want the best and costs have gone really high up like computers, internet etc,” says Navjot.
Every time Parneet works on the family's budget, he realises that the government has scrimped on his tax benefits.
Under section 80 C of the IT act Parneet can claim a tax deduction on tuition fees, however the total limit under 80 C is just Rs 1,00,000. Parneet like many middle class parents has already made investments in Provident Funds, and is also paying off the house loan. All this amounts to far more than what the 80 C exemption offers.
“The expenses are going up. There are so many other expenses that we make such as PFs , investments, loans, on top of it is the rising cost of education,” says Parneet.
Parneet hopes that the Finance Minister will realize that the cost of education has become very expensive, and in keeping with the times tuition fees should be made a fully deductible expense instead of including as a tax exemption under section 80 C.
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