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Compute Taxable amount of Children Education Allowance.

Prabeer (B. COM (H) CA & CS Final) (5484 Points)

19 November 2008

Compute Taxable amount of Children Education Allowance for the following two options:

1) Children Education Allowance received by Mr. Y, Rs. 90 p.m. per child for 3 children.

2) Children Education Allowance received Rs. 5000 p.a. Mr. X has 2 children - one aged 7 years another aged 6 months.

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7 Replies

Jitender (Chartered Accountant) (8724 Points)
Replied 19 November 2008

1 ) 1080

2)assumption: 5000 p.a per child

taxable amount : 7600

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CMA KNVV Sri Vidya - Sri Kanth (C.A.Final (New) ICWAI FINAL (New)) (11269 Points)
Replied 19 November 2008

1.) exemption is Rs.100 per month for maximum 2 children

so 100 * 12 months * 2 children = 2400 exemption

C.E.A. received is = Rs. 90 * 3 children * 12 months = Rs. 3240

exemption = Rs .2400

Taxable =Rs .3240 - RS . 2400 = RS.840

taxable RS.840

2.) Received RS . 5000 p.a. ( assumption per child)

then received = Rs . 10000

EXemption is = Rs . 2400

Taxable = Rs. 7600

Received RS . 5000 p.a. ( assumption for both two children)

then received = Rs . 5000

EXemption is = Rs . 2400

Taxable = Rs . 2600

Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
Replied 19 November 2008

Originally posted by :PRABEER SARKAR
"	Compute Taxable amount of Children Education Allowance for the following two options: 1) Children Education Allowance received by Mr. Y, Rs. 90 p.m. per child for 3 children. 2) Children Education Allowance received Rs. 5000 p.a. Mr. X has 2 children - one aged 7 years another aged 6 months.	"

1. RS. 1080 taxable

2. RS. 2600 taxable assuming Rs. 5000 is aggregate allowance recd for both the children

Kush Gangar (Final) (47 Points)
Replied 19 November 2008

Yes, I agree with Mr. Rupesh & Mr. Jitendra

a) 1080 - Taxable

b) 2600 taxable

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 21 November 2008

For the solution of the 1^st problem I agree with Mr. Jitender , Mr. Rupesh Kalantri & Mr. Kush, as ‘Mr. Y’ is receiving Rs. 90 per month so the exemption amount can’t exceed more than Rs. 90 per child for 2 children. Thus the taxable amount is Rs. 1080.00

But for the 2^nd Question I’ve a query i.e., as Mr. X’s second child is only 6 months old thus how can it be justified to claim exemption for his/her (2^nd Child’s) education?

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Abhai Srivastava (Financial Consultancy) (33 Points)
Replied 03 September 2010

I am a bachelor, but am paying school fees of my brother's daughter. My Brother do not have any earning and hence he does not file any ITR. CAN I CLAIM Children Education Exemption? I do not get any Allowance from my employer.