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If tution fees of employee children is reimbursed by employer

12 January 2021

if tution fees of employee children is reimbursed by employer then what is tax treatment in hand of employee and can claim deduction u/s 80c

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14 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 12 January 2021

How much amount is reimbursed
yes it is comes under 80c for two children

Mohin laskar (125 Points)
Replied 12 January 2021

27000

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 January 2021

Tution fees is exempt @ 100 rupees per month for two children and 300 rupees per month for hostel activities
u/s 80C

Mohin laskar (125 Points)
Replied 12 January 2021

1200 exemt is i m understand my question is 27000 what hi get from institute in these year is come to taxable income or exempt

1 Like

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 12 January 2021

1200 will be deducted from 27000 rupees

Kapadia Pravin (17249 Points)
Replied 12 January 2021

Tution fees is eligible under 80C. However reimbursement from employer company is part of taxable salary meaning Education Allowance .
Education allowance is deductible to the extent exempt.

Mohin laskar (125 Points)
Replied 12 January 2021

Its means 27000 is income of these year

Kapadia Pravin (17249 Points)
Replied 12 January 2021

Net effect is nil as one place it is part of income and at another place it is part of deduction.

Mohin laskar (125 Points)
Replied 12 January 2021

Its means taxable and other part of 80C 27000 is examt up to 150000

1 Like

ayusmita (Tax consultant) (5885 Points)
Replied 12 January 2021

You add it and deducut it
just like interest upto 10000 extemption
we add it and deducut it
same way add it and deducut it

venkatsai (articleship) (22 Points)
Replied 14 January 2021

Chapter VI A deductions will only be allowed if the expenditure was made out of assesee hands! Since employer paid for the expense he cannot claim it under 80C More over this will not be taxed under employee hands as the perquisite is monetory and it is not allowed under PGBP for the employer, since it is already taxed under employer, tax free in ee hands

Krishna Chaudhary (Accountant) (4531 Points)
Replied 15 January 2021

Exemption for Children’s education and Hostel Expenditure

Following exemption* is provided to an individual employed in India:

Children’s Education Allowance: INR 100 per month per child up to a maximum of 2 children.

Hostel Expenditure Allowance: INR 300 per month per child up to a maximum of 2 children.