Regarding Children Education Allowance of Indian Army

Hi Kuldeep,

Regarding Children Education Allowance (CEA) for Indian Army personnel:

• As per Section 10(14)(ii) of the Income Tax Act, the exemption for Children Education Allowance is ₹100 per month per child for a maximum of 2 children.

• This means the total exemption allowed is ₹2,400 per annum (₹100 × 12 months × 2 children).

Your case:

• CEA received: ₹27k per annum per child

• Exemption allowed: ₹2,400 per annum (for 2 children, max)

• The balance amount (₹27k - ₹2,400 = ₹24.6k) is taxable and should be included in income under the head "Salaries."

If the allowance exceeds ₹100 per month per child, the excess is taxable.