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Deduction of Children Education Allce

Kk Nair (172 Points)

15 March 2018

If one is claiming deduction of Tution Fees under 80C, can he claim for deduction of CEA he received along with salary; under a separate head? Is CEA taxable income?

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Sagar Agrawal (Article) (36 Points)
Replied 15 March 2018

Dear Mr. Nair,

Children education allowance i.e part of salary structure & fees paid towards tuition fees of the Children i.e. part of chapter VI-A deduction, are both different deductions & is therefore can be claimed respectively within the limit prescribed as per the Income Tax Act.

CEA can be claimed to upto Rs. 100 per children per month (CEA can be availed upto maximum 2 children).

In respect of 80C deduction, a parent can claim a deduction on the amount paid of tuition fees paid to any university, college, school or any other educational institution.Other components of fees such as development fees,transport fees are not eligible for deduction u/s 80C.Only tuition fees part of the total fees paid is allowed for deduction.

The maximum deduction on payments made towards tuition fee can be claimed up to Rs 1.50 lakh together with the deduction in respect of insurance, provident fund, pension etc. in a financial year.