Children Education Allowance Exemption

Ravishankar K (Accountant) (461 Points)

23 June 2011  

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.