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Rushi Prajapati (Querist)
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13 August 2018 How to calculate Children education allowance in case of multiple birth(twins) at first time and after single birth ?
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First single birth and then multiple birth
Is it allowed to take 200 for twins and 100 for single birth after twins?

Rushi Prajapati

Rushi Prajapati (Querist)
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21 August 2018 Life insurance corporation is considered as company or artificial judicial person under income tax act?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 July 2024 Children Education Allowance (CEA) under the Income Tax Act is provided to salaried individuals to cover the education expenses of their children. Here’s how the allowance is typically calculated and its applicability in case of multiple births and subsequent single births:

### Calculation of Children Education Allowance:

1. **Amount Allowed**:
- The current allowance is up to Rs. 100 per month per child for a maximum of 2 children.
- Therefore, if you have 2 children, the maximum CEA you can claim is Rs. 200 per month (Rs. 100 per child).

2. **Multiple Births (Twins) in the First Instance**:
- For twins born at the first instance, you can claim Rs. 100 per child per month.
- So, for twins, the CEA would be Rs. 200 per month (Rs. 100 for each twin).

3. **Subsequent Births (Single Child after Twins)**:
- If you have twins initially and then a subsequent single birth:
- You can continue to claim Rs. 100 per month for each of the twins.
- For the subsequent single child, you can claim Rs. 100 per month.

4. **Calculation Example**:
- **Scenario 1**: Twins born first:
- CEA for twins: Rs. 200 per month (Rs. 100 each).
- Subsequent single birth: Rs. 100 per month.
- Total CEA: Rs. 300 per month (Rs. 200 for twins + Rs. 100 for single child).

- **Scenario 2**: Single birth first and then twins:
- CEA for single child: Rs. 100 per month.
- CEA for twins: Rs. 200 per month (Rs. 100 each).
- Total CEA: Rs. 300 per month (Rs. 100 for single child + Rs. 200 for twins).

### Applicability and Clarification:

- **Allowance for Twins**: Yes, you can claim Rs. 200 per month (Rs. 100 for each twin) if they are born together.
- **Subsequent Births**: For subsequent single births after twins, you can claim Rs. 100 per month for each child.
- **Consistency**: The CEA is based on the number of eligible children. Therefore, if you have twins and later a single child, you can claim Rs. 200 for twins and Rs. 100 for the single child.

### Conclusion:

You are allowed to claim Children Education Allowance based on the number of eligible children, with specific amounts per child per month. The total allowance depends on the sequence of births and the number of children eligible under the provisions. Ensure to maintain proper documentation and adhere to income tax regulations while claiming CEA. If you have any doubts or need further clarification, consulting with a tax advisor or financial planner would be advisable.

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