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Ravishankar K (Accountant)     23 June 2011

Children Education Allowance Exemption

Dear Friends,


I am working in a central govt organisation where we provide children education allowance reimbursement to our employees, wherein it is given as 24000/- Per Year, i.e 1000 per child per month, subject to maximum of 2 children.


What should be the children education allowance calculation while calculating income tax, is the CEA given to employee treated as employees income or not?


Is the exemption same as 100/- PM per child subject to max 2 child i.e 1200/- per year and hostel fees @ 300/- PM  total 3600/-



Please do advice and guide me, awaiting your reply.

 10 Replies


RAKESH (Almost CA)     23 June 2011

Children Education Allowance is Rs. 100 per month and Hostel Allowance is Rs. 300 per month

CA Vipin Garg

CA Vipin Garg (Assistant Manager)     23 June 2011

Childern Education Allowance is exempted only upto Rs. 100 per month per child upto two childerns.

In the given case you can't claim exemption of hostel allowance out of the Childern Education Allowance, for claiming the exemption of Hostel Allowance you have to give the hostel allowance and childern education allowance seperately.



Originally posted by : RAKESH

Children Education Allowance is Rs. 100 per month and Hostel Allowance is Rs. 300 per month

it is available for maximum two children

Nitesh Mangal

Nitesh Mangal (CA-PCC Articale Assistant)     23 June 2011

Yes above comment is right,,,,, children education allowance is exempt up to rs,100per month maximum 2 child and hostel allowance is exempt up to rs. 300per month up to two child. and above amount from limit is taxable.........
Mukesh Kumar Singh

Mukesh Kumar Singh (CA-FINAL)     23 June 2011

yes, you are absolutely right sir,


alekhya (Article Trainee)     23 June 2011

Exemption relating to Education allowance is Rs.200 pm upto two childrens and for hostel allowance is Rs.300pm upto two childrens....


TARUN ARORA (Fresher CA)     23 June 2011

i think mr. vipin garg is right

Arun Garg

Arun Garg (Serving in Banking Sector)     23 June 2011

Mr vipin garg is right!


khemraj (jaipur)     24 June 2011

children educationALOWANCE will be exempted up to Rs.100per month per child maximum two child. and hostel expenditure allowance exempted upto Rs.300 per month per chile maximum two child.


Sumita Samadder

Sumita Samadder   27 April 2021

If you’re receiving an education allowance for your children from the employer then you’re qualified to claim the tax exemption under Income Tax Act 80c.
However, the extreme amount of child education allowance exemption is INR 1200 per annum or INR 100 per month for up to 2 children of a family. In addition, an employee can as well claim the deductions for children’s paid education fees under section 80C.

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