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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????

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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.