Rajarajan (AO) (272 Points)
09 December 2010Dear Sirs,
We are private limited company in Tamilnadu. Under Children education allowance can we allow our employees to avail Rs. 12,000 per annum, per child towards Children Education Allowance?
Then what is the allowance of Rs. 100 per child towards educaton. Are they one and the same?
Rajaraja
CA PARAS BAFNA
(Practising CA )
(33423 Points)
Replied 09 December 2010
CHILDREN EDUCATION ALLOWANCE U/S 10(14) read with Rule 2BB, is the Original Educational Allowance which is100/per Month Per Child subject to a maximum of 2 children.
12000/ is not Children Education Allowance.
It is Tuition Fee paid by an employee for full time education to any school. college, University or Educational Institution. Now this cap of 12000/- has been removed. You may allow deduction to your employee within the overall limit of1.00 lac U/s 80C.
Please also note that Tuition fee paid by an Individual for any 2 children of such individual is exempt..
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