PCC TAX SALARIES

Reg education allowance..If cost of education is less than Rs.1000pm its fully exempt.. If it exceeds Rs.1000pm is it fully taxable or Rs.1000 exempt????

Replies (19)

it exempt upto Rs.1000

It is fully taxable in such case..

ITS ONLY FOR SPECIFIED EMPLOYEES

Am getting confused again.. Is it fully taxable only for specified employees or wat??? Please clear me out...

Children education Allowance is exempted to the extent of Rs. 100P.M. per children up to a maximum of 2 children.

Suppose he is allowing Rs.80pm for each of 2 child then it is fully exempted.......and if the amt is Rs.150 pm for each of 2 child then 50*2*12 will be taxable.

Originally posted by :Dhivya
" Am getting confused again.. Is it fully taxable only for specified employees or wat??? Please clear me out... "

no the exemption is applicable 4 all type os eyees.

okay fine.. tanq Harsh*t..

In case of Children education allowance the amount exempt is limited to Rs. 100 p.m. per child upto a maximum of two children.(refer Rule 2BB)Thus if allowance is less than specified limit it is fully exempt and if it is more it shall be reduced by the aforesaid exemption limit.

children education allowance is exempt upto 100p.m. for one child and maximum upto two children.

Children education allowance is exempt upto 100p.m. for one child and maximum upto two children.................?????????????

Children Education allowance is a special allownce that is exempt u/s 10(14). It is not a perquisite. The question whether an employee is specified or not arises only in the case of valuation of a perquisite and not an allowance.

I think Divya is not getting her question right and people r replyin jus thinkin it as an easy question. Guys you do the same mistake in examination hall. Anyways heres the answer what i have learnt:

Education facility in employer's institute (Perquisite taxable in the hands of specified employee):

 

1. Where the educational institute is owned and maintained by the employer and education facility is provided or where such educational facility is provided in any institute by reason of employee's employement with the employer

  a. where edu. facility is provided to employee's children

      * where cost of education or value of such benefit doesn't exceed Rs. 1000/- pm per child = Amount taxable is NIL

 

      * where cost of education or value of such benefit exceeds Rs. 1000 pm per child =Amt taxable is Cost in similar inst (Less) Rs 1000 pm per child (Less)amt recd from employee

 

2. Where edu facility is provided to a member of his household (other members) = Amt taxable is  Cost in similar inst (Less) amt recd from employee

 

 

Note : There is no restriction on no. of children as in children education allowance.

i agree with u sir it is sec-17(2)(iii)/3(5)

 Children education Allowance is exempted to the extent of Rs. 100P.M. per children up to a maximum of 2 children.

Suppose he is allowing Rs.80pm for each of 2 child then it is fully exempted.......and if the amt is Rs.150 pm for each of 2 child then 50*2*12 will be taxable.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
16 October 2026
CA article trainee

Zerdi & Co. Chartered Accountants

Pune

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
10 October 2026
Accounts Associate Level 1

Abic and Mani Chartered Accountants

Kottayam

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details