Ad free CAclubindia and daily updates on your mobile. Subscribe Now!

Please help

Shiba sarkar (Student) (38 Points)

23 June 2016

Children's educational allowance to meet the hostel expenditure for three children.what is the tax treatment????

Reply
Follow
Share

1 Replies

Louza (Finance Specialist) (28 Points)
Replied 23 June 2016

Hi Shibha,

As per Section 80C-Tution fees is a deductible expense for full time courses only.

Hostel fees is allowed as per the Act only in a case where employee has been transferred to a different place and due to which hostel was required for the children.

Deduction cannot be claimed for 3 children.The husband and wife can claim separately in their separate returns for one child each,ie together they can claim deduction for a maximum of 2 children only.