Pl advice on the allowability of Deduction u/s 80C i.r.o fees paid to Institute of Chartered Accountants of India for admission / registration to study CA : svcsindia@gmail.com

Good question!

Section 80C(xvii) of the I T Act allows deduction for payment of Tuition Fee .The provision is as follows

(xvii) as tuition fees (excluding any payment towards any development fees or donation or payment of similar nature), whether at the time of admission or thereafter,

(a) to any university, college, school or other educational institution situated within India;

(b) for the purpose of full-time education of any of the persons specified in sub-section (4);"

The question whether ICAI is a University or College or School or falls within other educational institution . These terms have not been defined under the I T Act .Therefore plain reading of the I T Act shows that ICAI should not fall within these educational institution.Secondly, whether Registration Fee or admission fee should fall within definition of tuition Fee is also debatable in absence of definition of tuition fee under the I T Act.Therefore, in practical sense , assessing officer will disallow the claim of deduction u/s 80C of such payments -registration and admission fee- to ICAI stating that such payments are neither made to any university,college or school nor can it be taken within purview of tuition Fee.

However, legally this plain reading is fit for challenge and in my opinion judicial authority shall allow deduction of such expense on account of following arguments:

1. the deduction for tuition fee is allowed under section for Higher studies. The course of ICAI is of higher studies.
2. The types of payments which are to be excluded is given in section 80C only means development fees or donation or similar type. Admission and registration fees paid to ICAI does not fall within those terms.
3. The use of terms other institution in the law only shows that law makers have intended to include even those institution which does not fall within the term University, School or college.

Therefore, claim it..... may be it will disallowed ........ then appeal before CIT(A) and if you do not win ............go to higher judicial fora with good lawyer.Another way, write to ICAI to pursue for a circular from CBDT on the matter.