Till which age / Grade of a child, the education allowance is allowed?

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Hi All,

Can anyone suggest till which age of the child, the education allowance is allowed?

Regards
Nagaraj J

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I think there is no age limit fixed for claiming education allowance. This even should not be fixed.

Exemption for Children’s education and Hostel Expenditure

Following exemption is provided to an individual employed in India:*

  • Children’s Education Allowance : INR 100 per month per child up to a maximum of 2 children.

  • Hostel Expenditure Allowance : INR 300 per month per child up to a maximum of 2 children.
    .

*(Only if expenses are incurred in India as per Section 10(14) of the income tax act)

Deduction of payment made towards Tuition Fees under section 80C

A parent can claim a deduction on the amount paid as tuition fees to a university, college, school or any other educational institution. Other components of fees like development fees and transport fees are not eligible for deduction under Section 80C.

The maximum deduction on payments made towards tuition fee can be claimed for up to Rs 1.5 lakh together with the deduction with respect to insurance, provident fund, pension etc. in a financial year.

Eligibility of tuition fees for claiming deductions under Section 80C

Persons paying any sum/ fees towards the education of their children can claim tax deduction under Section 80C, subject to satisfaction of certain conditions which have been enumerated below:

  • Who is eligible : This deduction is available only to an individual parent or guardian or sponsor.

  • How many Children ?: The deduction is available to a maximum of 2 children for each individual. Therefore, a maximum of 4 children’s deduction can be claimed, i.e. 2 by each parent.

  • Maximum Limit : Each parent can claim a deduction of up to Rs 1.50 lakh separately every financial year. Please note that the aggregate amount of deduction under section [80C], 80CCC and 80CCD shall not exceed INR 1,50,000 for the individual parent.

  • Deduction is available irrespective of the class attended by the child. However, the institution, college or university must be situated in India, even if affiliated to a foreign university.

  • The deduction is available only for full-time education courses that include nursery school, creches and play schools.

  • The deduction is available only on actual payment and not on payable basis. For instance, if the fee is paid by the parent in April 2019 for the quarter ending March 2019 then the fee paid will be eligible for a deduction in the FY 2019-20.

  • The fee can also be claimed by an Unmarried person/ divorced parent.

  • An adopted Child’s school fees are also eligible for deduction.

Non-eligibility of payments towards tuition fees

  • Deduction is not available for payment made towards Development fees, donation or charity, Private Coaching center, other expenses such as hostel expenses, mess charges, library charges or similar payments.

  • Deduction is not available for payment made towards part-time courses.

  • Deduction is not available towards payment made for school fees of self, spouse, brother or sister, father or mother or any other relative.

  • Fees paid to a foreign university situated outside India is not eligible for this deduction.

Thanks

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