Is there any restriction in tution fee for claiming incometax exemption? Rs 12,000/- per child is correct?

My friend has said that tution fee can be exempted from tax max. upto Rs 24,000/- ie. 2 children , Rs 12,000/- each. Is this correct?
or
we can exempt full tution fee?

Your friend is correct till the financial year 2005-06 (up to 31-3-2006). From 1-4-2006 it has been raised to1 lakh (for one or two children). You can claim up to 1 lakh on the tuition fee of your two children. Rs.12,000 limit has been removed from 1-4-2006. If you have paid a tuition fee of Rs.1 lakh for only one child, still it is allowed. The tuition fee falls under 80c exemption. See the below web site in support my answer.

http://www.rediff.com/getahead/2005/dec/...

Please note that the website is giving last year details. As far as Sec.80C is concerned, the same stands for this year also without any change.

My above answer is 100% correct and I assure you the correctness of my answer. Do not worry.

for one child 12000 rs can be excempted..

If you have two Children then you can excempt 24000 rs.

Your friend is correct.
No

there is no such thing now.

now tuition fees is exempt upto Rs.1,00,000

Regarding Tution Fees

1. Tution fees means fees charged by educational institution and not by private classes.

2 The educational institution must be located within India.

3. Any sum paid, by an individual, towards tution fees (EXCLUDING payment towards development fund, building fund or payment of similar nature) will be exempt.

4. You can claim exemption for tution fees for any of your TWO child.

5. overall limit should not cross Rs 1,00,000 /- in an year.

6. For your knowledge - This deduction is allowed under section 80C of Income tax Act. Section 80C allows a maximum of Rs 1,00,000 as deduction from Income. Even if your other deductions like lic, ppf etc. including tution fees is above Rs 1,00,000 /-, the overall deduction from income will be only Rs 1,00,000 /-