Section 10(14) - Children Education Allowance

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Ankur Shah (Querist)

13 June 2009 Dear All,

One employee is getting Rs. 50/- per children for 5 children (totalling to Rs. 3,000/- p.a.) as children education allowance. However, as per Section 10(14) r.w.r. 2BB of Income Tax Rules Rs. 100/- per child s.t. max. of 2 children can be claimed as exempt.
Now my query is whether exemption of Rs. 2,400/- should be taken or proportionate exemption of Rs. 1,200/- to be claimed?
Request you all to kind;y provide your valuable views.

Deepak Goel

Deepak Goel (Expert)

14 June 2009 As per section 10(14) reg. Children Education Allowance - you can claim exeption max. 100/- per child subject to max. 2 child. In your case Max. exemption 2400/- you can claim and 600/- will added in your income.

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)

14 June 2009 exemption u/s 10(14)(ii) read with Rule 2BB(ii) is Rs. 100 per month per child to the maximum of 2 children irrespective of actual expenses so Rs. 1200 (Rs. 50* 2 *12)will be exempted and remaining 1800 will be taxable.

Vivek Gupta

Vivek Gupta (Expert)

15 June 2009 you can claim exeption max. 100/- per child subject to max. 2 child. In your case, as you are receiving Rs.50/- per child, so 50/-*2childs*12months.

Thus, you need to go by Mr. Manmohan reply

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