Meaning of “Cost of education”

The meaning of cost of education under section 10(16) of the Income Tax Act is not defined in the act itself. But we can take guidance from decisions by various high courts. Here are excerpts of courts orders in which the Hon’ble Tribunal tried to explain the meaning of cost of education.

Meaning of cost of education defined by court

The phrase ‘cost of education’ used in section 10(16) of the Income Tax Act came up before hon’ble ITAT-Bombay in Dr. J.C.N. Joshipura vs. Asstt. CIT [1996] 56 ITD 424 (Bom. – Trib.) and it explained.

Meaning : Term ‘cost of education’ takes within its ambit not only tuition fee but all other incidental expenses incurred for acquiring education.

Section 10(16) of Income Tax Act

10(16). scholarships granted to meet the cost of education;

In this article, you can get guidance from high courts on the meaning of cost of education under section 10(16) of the Income Tax Act.

Updated up to Finance Act 2021