What is children’s education allowance? #
Child education allowance is paid to the employees to meet their children’s educational expenses. It is exempted up to rupees 100 per month per child and up to a maximum of two children, with a maximum exemption of rupees 2400, as per Section 10 (14) of the Income-tax Act, 1961. Children’s education allowance received of more than 2400 per year is fully taxable income.
The exemption of children’s education allowance #
However, the employees can also avail of the exemption from their children’s school fees. Out of the school fees, only the portion of tuition fee payment is exempted under section 80C. By submitting the proof of school fees receipt, the exemption can be availed, and cannot claim more than 1.5 lacs exemption as per the provision under section 80C.