Reg education allowance..If cost of education is less than Rs.1000pm its fully exempt.. If it exceeds Rs.1000pm is it fully taxable or Rs.1000 exempt????
19 Replies
Shikha Sharma
(Chartered Accountant)
(311 Points)
Replied 05 October 2009
It is fully taxable in such case..
CA N.Dhivya Lakshmi
(Chartered Accountant)
(515 Points)
Replied 05 October 2009
Am getting confused again.. Is it fully taxable only for specified employees or wat??? Please clear me out...
The Harshit Aggarwal
(B.Com(H) ,CS Final)
(5278 Points)
Replied 05 October 2009
Children education Allowance is exempted to the extent of Rs. 100P.M. per children up to a maximum of 2 children.
Suppose he is allowing Rs.80pm for each of 2 child then it is fully exempted.......and if the amt is Rs.150 pm for each of 2 child then 50*2*12 will be taxable.
The Harshit Aggarwal
(B.Com(H) ,CS Final)
(5278 Points)
Replied 05 October 2009
| Originally posted by :Dhivya | ||
| " | Am getting confused again.. Is it fully taxable only for specified employees or wat??? Please clear me out... | " |
no the exemption is applicable 4 all type os eyees.
CA N.Dhivya Lakshmi
(Chartered Accountant)
(515 Points)
Replied 05 October 2009
okay fine.. tanq Harsh*t..
CA Arindam Dey
(Chartered Accountant)
(117 Points)
Replied 05 October 2009
In case of Children education allowance the amount exempt is limited to Rs. 100 p.m. per child upto a maximum of two children.(refer Rule 2BB)Thus if allowance is less than specified limit it is fully exempt and if it is more it shall be reduced by the aforesaid exemption limit.
Ravi Bhojwani
(Proprietor)
(40 Points)
Replied 05 October 2009
children education allowance is exempt upto 100p.m. for one child and maximum upto two children.
Sagar
(Student)
(142 Points)
Replied 06 October 2009
Children education allowance is exempt upto 100p.m. for one child and maximum upto two children.................?????????????
CA Arindam Dey
(Chartered Accountant)
(117 Points)
Replied 06 October 2009
Children Education allowance is a special allownce that is exempt u/s 10(14). It is not a perquisite. The question whether an employee is specified or not arises only in the case of valuation of a perquisite and not an allowance.
Manish Soni
(CA , CS)
(828 Points)
Replied 06 October 2009
I think Divya is not getting her question right and people r replyin jus thinkin it as an easy question. Guys you do the same mistake in examination hall. Anyways heres the answer what i have learnt:
Education facility in employer's institute (Perquisite taxable in the hands of specified employee):
1. Where the educational institute is owned and maintained by the employer and education facility is provided or where such educational facility is provided in any institute by reason of employee's employement with the employer
a. where edu. facility is provided to employee's children
* where cost of education or value of such benefit doesn't exceed Rs. 1000/- pm per child = Amount taxable is NIL
* where cost of education or value of such benefit exceeds Rs. 1000 pm per child =Amt taxable is Cost in similar inst (Less) Rs 1000 pm per child (Less)amt recd from employee
2. Where edu facility is provided to a member of his household (other members) = Amt taxable is Cost in similar inst (Less) amt recd from employee
Note : There is no restriction on no. of children as in children education allowance.
CA NIKHIL GUPTA
(CA, CS, B.COM (HONS.))
(126 Points)
Replied 06 October 2009
i agree with u sir it is sec-17(2)(iii)/3(5)
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