education allowance

anupam sharma (Querist) 06 March 2010 This query is : Resolved
is education allowance exempted form tax for school going children only??? is there an age limit for child to claim such exemption??

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A V Vishal (Expert) 06 March 2010
Under Income Tax Act, if the allowance forms part of the salary then it is exempt as under:
Children Education Allowance
Rs. 100 per month per child up to a maximum of two children.

Any allowance granted to an employee to meet the hostel expenditure on his child
Rs. 300 per month per child up to a maximum of two children.

Further deduction on account of payment of tuition fee on actuals for maximum of 2 children can be claimed u/s. 80C.

There is no age limit of the child for claiming the fee, even if the assessee's children are pursuing higher education/professional courses then such an employee can claim deduction under this section.

Kumar Thadhani (Expert) 06 March 2010
Further deduction allowance tuition fees are exempted provided that in overall does not exceeds exemption limits of Rs.1,00,000/= undersection 80C.