Regarding Computer Education

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Rajnish (Querist)
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06 October 2010 Dear Sir,

Please take a note that, In my salary slip i have received computer education allowance of Rs. 2,000/- pm.

Computer education allowance taxfree of Rs. 800/- pm?

Please guide me regarding my query.

your co-operation will be highly appreciated.

Regards
Rajnish

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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06 October 2010 Dear Rajnish...

There is any allowance of the name of Computer Allowance.
Rs. 800 pm allowed for deduction for Transport Allowance.

But yes there is one allowance called Achedmic Allowance and this is exempt upto that limit which has been spent for official purpose.

Now, you can claim this computer education allowance under that exemption but you will have to keep any record for which you are going to take exemption.

By-the-way are you sure that this is computer education allowance not CHILDREN EDUCATION ALLOWANCE. If this is children education allowance then exemtption is Rs. 100 pm per child is exempt and upto two children.

Please check once again.

Regards!!!
Dinesh S. Adhikari

Rajnish

Rajnish (Querist)
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06 October 2010 Dear Mr. Dinesh,

Thanks for your reply.

i am sure this is computer education allowance.

If Computer education allowance exemption then What type of record to keep for exemption?

Regards
Rajnish

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 Regarding Computer Education Allowance exemption and records to keep:

Since Computer Education Allowance is not specifically defined under income tax exemption rules like Children Education Allowance or Transport Allowance, it doesn’t have a fixed exempt limit by default.

However, if your employer classifies it as an Academic or Educational Allowance given specifically for education purposes, then you can claim exemption to the extent the allowance is actually spent on education expenses related to computer education.

What type of records/documents should you keep?
To claim exemption on this allowance, you should maintain proper evidence that the allowance is being used for educational expenses related to computer education. Such records may include:

Fee receipts/invoices from the computer education institute/school.
Payment proofs such as bank statements, cheque copies, or cash receipts.
Any agreement or communication indicating that this allowance is meant for computer education.
Documents showing the relationship of the student (self or child) who is availing the computer education.
Key points:
The exemption can only be claimed up to the amount actually spent on education.
You should clearly show that the allowance is being used solely for education.
Without supporting documents, the exemption claim may be rejected in case of scrutiny.
Summary:
Computer Education Allowance itself is not explicitly exempt in Income Tax Act.
You can claim exemption under academic/educational allowance only if you keep proper proof of actual educational expenditure.
Keep fee receipts and payment proofs for claiming exemption.
If your employer insists on paying this allowance and you want tax exemption, keeping good documentation is crucial.

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