View Full Version : Childrens Educational Allowance

16-09-2009, 01:30 PM
Dear friends,
I would like to know wheather children educational allowance is fully exempted from incometax.Or what are the rules to consider while calculating income tax on childrens educational allowance

16-09-2009, 07:52 PM
Dear friend
What I know, the limit of exemption of CEA lies within limit of Section 88 which has not been changed. It means what you are paying as Tuition fees is fully exempted under Section 88 but the amount of CEA limited to Rs.12000/- (if claimed) will be your income for calculation of I.Tax.

17-09-2009, 10:48 AM
As per my knowledge,previous limit of exemption of Chldren education allowance has not been changed so far,and CEA is exempted only upto Rs 100 per month per child.For IT calculation,first you have to add reimbursed CEA amount in the gross income than only this exempted amount (either Rs 100 or actual reimbursed amount whichever is minimum) will be deduted from gross.Although you can take the advantage of amount of actual fee paid under deduction within limit of Rs 100000.

18-09-2009, 06:59 AM
The amount of CEA received by you has to be added to the Gross Income and the actual payment of TUTION FEE ONLY can be included in the deductions allowed under Section 80(C) alongwith GPF, LIC etc, subject to the ceiling of Rs.1,00,000/- u/s 80(C). If you have obtained an educational loan for higher studies of your dependents, the interest paid on that can be deducted under section 80E.