Dear all,
Can anyone please throw light on educational allowance , the presently it is allowable to Rs 100/ per child per month.
Now i understand that it has been revised to Rs 1000/ per month per child.
Can anyone clariffy this?
Regards,
Rajat
From India, Pune
101Can anyone please throw light on educational allowance , the presently it is allowable to Rs 100/ per child per month.
Now i understand that it has been revised to Rs 1000/ per month per child.
Can anyone clariffy this?
Regards,
Rajat
From India, Pune
Dear Mr.Joshi
This is purely based on the Kids one have that too if they go for schooling. Normally one has to produce the fee receipt if their kids are going for school. That will include only the Tution/Term fees alone and not other fees such as transportation/Unifor/function/capitation based fees. Tax Rebate will be made available once producing the necessary fees receipt copies. Otherwise it will be presumed as Taxable salary. I understand it will be allowed only for first 2 kids if born in different year/occasion and if they are twins/triplets.
Bye :)
From India, Madras
This is purely based on the Kids one have that too if they go for schooling. Normally one has to produce the fee receipt if their kids are going for school. That will include only the Tution/Term fees alone and not other fees such as transportation/Unifor/function/capitation based fees. Tax Rebate will be made available once producing the necessary fees receipt copies. Otherwise it will be presumed as Taxable salary. I understand it will be allowed only for first 2 kids if born in different year/occasion and if they are twins/triplets.
Bye :)
From India, Madras
Hi Folks,
Thanks for your responses..
I discussed this issue of Rs 1000/- per month per child with CAs & experts and it was clarified that this is only applicable if the Educational Institutional is run & maintained by the company where the employee's children are provided education, only then this is applicable.
Under section 10(14)(ii) read with Rule 2BB(2), children's education allowance qualifies for an exemption of Rs 100 per month per child subject to a maximum of two children and any allowance granted to meet the hostel expenditure of the employees children qualifies for an exemption of Rs 300 per month per child subject to a maximum of two children. The issue that has been raised is probably because the allowance in the instant case is granted as a children's education allowance to meet the expenditure of the employee's child's education, which is in the nature of admission fee, tuition fee, cost of books, uniform, hostel expenditure and transportation.
It can be seen that though the allowance is termed as `children's education allowance', the said allowance is also meant to meet the expenditure on hostel accommodation of the child.
It is in this background that the issue has been raised as to whether the exemption will be restricted to Rs 100 towards children's education allowance or whether the exemption of Rs 300 being hostel expenditure allowance can also be claimed.
It can be seen that Rule 2BB(2) refers to `children education allowance' and `any allowance granted to an employee to meet the hostel expenditure of his child'.
A plain reading of the Rule makes it clear that so far as hostel expenditure is concerned, what is relevant is that the allowance should have been granted to meet the hostel expenditure of the child.
Cheers,
Rajat
From India, Pune
Thanks for your responses..
I discussed this issue of Rs 1000/- per month per child with CAs & experts and it was clarified that this is only applicable if the Educational Institutional is run & maintained by the company where the employee's children are provided education, only then this is applicable.
Under section 10(14)(ii) read with Rule 2BB(2), children's education allowance qualifies for an exemption of Rs 100 per month per child subject to a maximum of two children and any allowance granted to meet the hostel expenditure of the employees children qualifies for an exemption of Rs 300 per month per child subject to a maximum of two children. The issue that has been raised is probably because the allowance in the instant case is granted as a children's education allowance to meet the expenditure of the employee's child's education, which is in the nature of admission fee, tuition fee, cost of books, uniform, hostel expenditure and transportation.
It can be seen that though the allowance is termed as `children's education allowance', the said allowance is also meant to meet the expenditure on hostel accommodation of the child.
It is in this background that the issue has been raised as to whether the exemption will be restricted to Rs 100 towards children's education allowance or whether the exemption of Rs 300 being hostel expenditure allowance can also be claimed.
It can be seen that Rule 2BB(2) refers to `children education allowance' and `any allowance granted to an employee to meet the hostel expenditure of his child'.
A plain reading of the Rule makes it clear that so far as hostel expenditure is concerned, what is relevant is that the allowance should have been granted to meet the hostel expenditure of the child.
Cheers,
Rajat
From India, Pune
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