For availing this deduction “higher education” would mean any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university by the Central government or State government.
It should be paid for the purposes of the full time education of any two children of the tax payer.
Thus, it is clear that the educational institution should be situated within India.
This means that no deduction can be claimed by a tax payer in respect of tuition fees paid for the education of child in an educational institution which is situated outside India. The tuition fees paid to any such institution will qualify for deduction up to the maximum amount of ` 1 lakh. However, the deduction is only for tuition fees and not for any other fees like conveyance fees, bus charges, development fees or donation or any other fees of similar nature.
Thus, if these precautions are observed by a tax payer, then he would be able to enjoy the new tax deduction to the full extent and save maximum amount of income tax up to ` 30,000 every year.