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maheshkumar
16-01-2010, 12:19 PM
kindly clarify whether the fees paid at the time of admission in 2009(nov) of a
child to LKG for the next academic year 2010-2011(june), can be submitted for reimbursement in dec,2009 or any date before the 2010 june

badri mannargudi
16-01-2010, 05:41 PM
kindly clarify whether the fees paid at the time of admission in 2009(nov) of a
child to LKG for the next academic year 2010-2011(june) can be submitted for reimbursed in dec,2009 or any date before the 2010 june

Dear friend,

Please consider the fact that you are required to give a certificate that your child was not absent (or on leave) for more than a month during the period for which the Allowance is sought. This being the case, in my view, one can not stake claim before the said condition is satisfied. For example, I filed my claim for the quarter ending 31.12.2009 on 3rd of December 2009 after my children attended school on 02.12.2009. My CAO asked me to file on or after 01/01/2010. I replied that the moment my children attended school on 01st and 02nd of December, they have fulfilled the condition! My application was accepted without further murmur. (that my application is pending disposal is another matter).
With regards,
Badri

aneesh
17-01-2010, 01:49 PM
Dear friend,

Please consider the fact that you are required to give a certificate that your child was not absent (or on leave) for more than a month during the period for which the Allowance is sought. This being the case, in my view, one can not stake claim before the said condition is satisfied. For example, I filed my claim for the quarter ending 31.12.2009 on 3rd of December 2009 after my children attended school on 02.12.2009. My CAO asked me to file on or after 01/01/2010. I replied that the moment my children attended school on 01st and 02nd of December, they have fulfilled the condition! My application was accepted without further murmur. (that my application is pending disposal is another matter).
With regards,
Badri

Dear Sir

In case of Purchase of Books, Uniform and Shoes the claim will be for the academic year. Even in this case if the certifficate is essential the claim is to be admitted only after the end of the academic year. Please offer your views how to go about it. Further processing of claims every quarter will be a strain for administration/accounts

badri mannargudi
17-01-2010, 11:09 PM
Dear Sir

In case of Purchase of Books, Uniform and Shoes the claim will be for the academic year. Even in this case if the certifficate is essential the claim is to be admitted only after the end of the academic year. Please offer your views how to go about it. Further processing of claims every quarter will be a strain for administration/accounts

The reference to attendence would only have reference to Tution Fees, for obvious reasons. All other fees as well as expenditure on Books/uniform and likes could well be included in the Claim for the first quarter of the Academic year.
With regards,
Badri

Anthony
18-01-2010, 04:24 AM
kindly clarify whether the fees paid at the time of admission in 2009(nov) of a
child to LKG for the next academic year 2010-2011(june), can be submitted for reimbursement in dec,2009 or any date before the 2010 june

Dear Mr.Mahesh,

As you have said that you said that your son has to be admitted in LKG only for the academic year 2010-2011, you can not claim the Educational Allowance for the period you have mentioned. You can claim the amount only in the month of June'2010 after you child has been admitted in school. In the original bill, the school authorities should have mentioned that your son is admitted for LKG for the academic year 2010-2011. Then only you can claim the amount you had paid.

Anthony

VKANIRUDH
20-01-2010, 06:12 PM
As per new circular dated 11.01.2010 of income tax children education allowance is not covered under the head salary and it covers in prequisite and that exempt upto rs.1000/- per child per month. All are requested to kindly clairfy that my view is right or wrong.

tvenkatam
20-01-2010, 09:57 PM
As per new circular dated 11.01.2010 of income tax children education allowance is not covered under the head salary and it covers in prequisite and that exempt upto rs.1000/- per child per month. All are requested to kindly clairfy that my view is right or wrong.

Dear Friend,

CEA will be treated as ‘perquisite’ only if it is directly incurred by the employer.

When CEA is reimbursed to the employee after it is incurred by the employee, the amount so reimbursed will form a part of the ‘salary income’ of the employee.

VKANIRUDH
21-01-2010, 11:29 AM
Respected Sir

In my opinion it is wrong because only Allowance is Taxable and reimbursement is not taxable because we have already paid Income Tax on our salary and this is reimbusement whcih is our expenditure and the tax is calculated only for Income not for expenditure. Therefore CEA should be fall in the definition of Prequisite only. What is your opinion.

badri mannargudi
21-01-2010, 01:46 PM
Respected Sir

In my opinion it is wrong because only Allowance is Taxable and reimbursement is not taxable because we have already paid Income Tax on our salary and this is reimbusement whcih is our expenditure and the tax is calculated only for Income not for expenditure. Therefore CEA should be fall in the definition of Prequisite only. What is your opinion.

My dear friends,

Same argument can be made in respect of Medical Reimbursement. But the fact remains that over a certain limit such reimbursement is treated as part of salary and includible in the Assessable value under the provisions of I.T Act/Rules made thereunder.



Secondly, the moment you get an expenditure reimbursed, you can no more said to have incurred in such expenditure.
In any case, please visit the following link and read Answer to Question No.76.(under the topic Gerneral)
http://www.incometaxindia.gov.in/questionbank.htm#J

Having said that, the readers may be aware of the fact that CEA is exempt to a certain extent (I think it is 1200 (each of two children) for the whole year. This quantum may be wrong. (Reader may consult Swamy's Handbook for exact limit)
With regards,
Badri
BAdri

tvenkatam
21-01-2010, 03:19 PM
Respected Sir

In my opinion it is wrong because only Allowance is Taxable and reimbursement is not taxable because we have already paid Income Tax on our salary and this is reimbusement whcih is our expenditure and the tax is calculated only for Income not for expenditure. Therefore CEA should be fall in the definition of Prequisite only. What is your opinion.

Dear Mr. Anirudh,

Section 17(2) of the IT Act defines ‘Perquisite’ as any casual emolument or benefit attached to an office or position in addition to salary; and perquisite include the following:
(i) Value of rent free / concessional rent accommodation provided by the employer
(ii) Any sum paid by the employer in respect of an obligation which was actually payable by the assessee
(iii) Value of any benefit/ amenity granted free or at concessional rate to specified employees, etc.

‘Salary income’ shall include all allowances (including CEA) paid to an employee unless they are specifically exempt from inclusion in the ‘income’.

In the case of HRA, the allowance paid to the employee is not ‘perquisite’ and is included in the ‘salary income’ subject to certain exemption limits. However, in the case of provision of rent free accommodation, the cost of which is borne by the employer, the same is treated as ‘perquisite’.