Child Education Allowance/Child Hostel Allowance Exemption from Incoem Tax

Viewed 4100

Dear Sir,

Good evening.

Can you pls. clarify the following.

As per Income Tax Rule (for FY:2011-12 & AY:2012-13), can an Individual eligible to get tax exemption of both Child Education Allowance and Child Hostel Allowance ? Under what conditions an employee is eligible to get tax exemption of both the allowances. Also under what circumstances an individual is eligible to get tax exemption of any one of the above allowances.

Appreciate your clarification on above queries at the earliest.

Regards Hussain

1 Answers

In case your salary has component for children education allowance, you may get Rs 100 per month exemption per child for maximum up to two children.

Otherwise you can get deduction under section 80C for tuition fees paid towards children education. But it can only include education expenses and cannot include hostel fees or school development fees etc.

Related