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Ms. Iyer, an individual who has opted out of the default regime under section 202, pays the following to her son's school in India for his full-time education. Which payment qualifies under section…

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Ms. Iyer, an individual who has opted out of the default regime under section 202, pays the following to her son's school in India for his full-time education. Which payment qualifies under section 123 and Schedule XV of the Income-tax Act, 2025?

  1. The term's school-bus charges

  2. The term's development fees

  3. The term's tuition fees

  4. A donation to the school building fund

Answer and explanation

Correct answer: C - The term's tuition fees

Paragraph 1(q) of Schedule XV covers tuition fees paid to a school, college or other educational institution in India for the full-time education of up to two children. It expressly excludes development fees, donations and payments of a similar nature, so development fees do not qualify even though the school charges them. Transport charges are not tuition fees.

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