what is section 10 14 child education allowance

Everything About Section 10(14)(ii) of Income Tax Act, 1961

The allowances covered under section 10(14)(ii) of Income Tax Act, 1961 are meant to meet expenses that are not directly related to the performance of duties but are provided to employees due to the nature of their employment like cost of living in certain areas, climate, or other personal expenses necessitated by their job conditions. In this article, we will discuss the meaning of section 10(14)(ii) and type of allowance covered under this section.

What is section 10(14)(ii) of income tax act.

Section 10(14)(ii) of the Income Tax Act, 1961 deals with exemptions for certain allowances provided to employees by their employers during the employment. It specifically covers allowances granted to meet the personal expenses of employee or to compensate for increased living costs due to location of work.

What are the conditions to avail the Exemption u/s 10(14)(i)?

The tax exemption u/s 10(14)(ii) comes with specific conditions that are as follows:

These allowance must be given by the employer to employee.
These should be used for the specific purpose for which these are given.
Any amount paid beyond this above exemption limits is taxable.
The amount of exemption is subject to the limits prescribed by the CBDT.

Type of Allowances under Section 10(14)(ii)

The government periodically sets the exemption limits for various allowances u/s 10(14)(ii). Here are the exemption limits for allowances under this section:

1. Uncongenial Climate Allowance

Employees working in areas with very harsh or uncongenial climates receive this allowance to compensate for the adverse conditions of weather. Employees are eligible an exemption up to:

₹7000 per month for employees working at Siachen area of Jammu and Kashmir (category II).
₹800 per month for employees working at places specified in category I.
₹300 per month for employees working at any places located at a height of 1,000 meters or more above the sea level, other than places specified at categories I & II.

2. Snow Bound Area Allowance

This allowance is given to employees working in snow bound areas where facilities is limited and the conditions for living are difficult due to extreme cold and heavy snowfall. Employees are eligible an exemption up to:

3. Avalanche Allowance

This allowance is given to employees posted in areas prone to avalanches, this allowance compensates for the high risk and challenging conditions associated with such area. Employees are eligible an exemption up to:

4. Special Compensatory (Uncongenial Climate) Allowance

Employees working in areas with extremely harsh or uncongenial climates receive this allowance to compensate for the adverse conditions of weather. These conditions may include extreme heat, cold, humidity, or other environmental factors making living and working more difficult. Employees are eligible an exemption up to:

₹300 per month for employees working at any places located at a height of 1,000 meters or more above the sea level, other than places specified at category I and II.

5. Special Compensatory (Hilly Areas) Allowance or Climate Allowance

This allowance is provided to employees working in hilly areas where the climate is harsh and living conditions are difficult. The challenging terrain and weather conditions in such areas can lead to higher living costs and more difficult working environments. Employees are eligible an exemption up to:

6. Special Compensatory (Difficult Area) Allowance or Disturbed Area Allowance

This allowance is given to employees working in areas classified as difficult or disturbed. These areas may face socio-political unrest, conflict, or other disturbances that impact daily life and safety. Employees are eligible an exemption up to:

₹1300 per month for employees working at place specified in category II
₹1100 per month for employees working at place specified in category III
₹1050 per month for employees working at place specified in category IV
₹750 per month for employees working at place specified in category V
₹300 per month for employees working at place specified in category VI
₹200 per month for employees working at place specified in category VII

7. Special Compensatory (Border Area) Allowance

This allowance is given to employees working in border areas where living and working conditions are particularly challenging due to the closeness to national borders. These areas require the heightened security risks, limited access to resources, and increased isolation. Employees are eligible an exemption up to:

8. Special Compensatory (Remote Locality) Allowance or Scheduled/Tribal Area Allowance

Employees working in remote localities, scheduled areas, or tribal areas receive this allowance to compensate for the isolation and lack of infrastructure in these areas. These areas often have limited access to basic amenities, healthcare, and education which make living conditions more difficult. Employees are eligible an exemption of up to:

₹200 per month if they are working in Madhya Pradesh, Tamil Nadu, Uttar Pradesh, Karnataka, Tripura, Assam, West Bengal, Bihar or Orissa.

9. Underground Allowance

This allowance is given to employees working in uncongenial, unnatural climate in underground mines or similar environments. These conditions can be hazardous and challenging, requiring additional compensation. This Allowance is exempt for whole of India. Employees are eligible an exemption of up to:

₹800 per month for this allowance.

10. High Altitude Allowance

This allowance is given to employees working at high altitudes, these areas face the significant challenges posed by high altitude conditions like lower oxygen levels, extreme weather, and isolation. Employees are eligible an exemption up to:

₹1060 per month for employees working at place where altitude is of 9,000 to 15,000 feet.
₹1600 per month for employees working at place where altitude is above 15,000 feet.

11. Island Duty Allowance

This allowance is given to member of armed forces posted on islands where living conditions are challenging due to isolation and limited infrastructure. This allowance is exempt only for Andaman & Nicobar and Lakshadweep Group of Islands.

This allowance is exempt up to ₹3,250 per month.

12. Children Education Allowance

This allowance is designed to assist employees with the costs of their children’s education. Employees can claim an exemption of up to ₹100 per month per child up to 2 children. This exemption is typically applicable for children up to the age of 20.

13. Hostel Allowance

If you are a construction worker and have been assigned a project in a different city, and your employer provides a hostel facility because no other suitable accommodation is available nearby. In such case, the Hostel allowance would be considered job related allowance since staying in a hostel is a necessity for your job. You can get an exemption of up to ₹300 per month per child for hostel expenses, applicable for up to 2 children.

14 .Transport Allowance

A disabled employee is given a transport allowance of INR 3,200 per month to cover their travel expenses from home to their workplace.

15. Compensatory Field Area Allowance

The employee is eligible an exemption up to ₹2,600 per month for this allowance if the employee is working in specified areas of Arunachal Pradesh, Sikkim, Himachal Pradesh, Uttar Pradesh, and Jammu and Kashmir or entire states of Manipur and Nagaland.

16. Modified Field Area Allowance

The employee is eligible an exemption up to ₹1,000 per month for this allowance if the employee is working in designated areas in Punjab, Rajasthan, Haryana, Himachal Pradesh, Arunachal Pradesh, Assam, Sikkim, West Bengal, Uttar Pradesh, and Jammu and Kashmir and Entire states of Mizoram and Tripura

17. Counter-Insurgency Allowance

The employee is eligible an exemption up to ₹3,900 per month for this allowance if employee is members of the armed forces engaged in counter-insurgency operations.

Read also : Everything About Section 10(14)(i) of Income tax Act, 1961

Final Words

Section 10(14)(ii) of the Income Tax Act, 1961, provides tax exemptions for various allowances granted to employees to cover personal expenses related to their employment conditions like living in remote or high-altitude areas, or working in adverse climates. These allowances are exempt from tax to the extent specified by the CBDT which ensures that employees are not taxed for expenses necessitated by their job conditions.

Frequently Asked Questions (FAQ)

Highly active field area allowance is also covered under this section.

7 thoughts on “Everything About Section 10(14)(ii) of Income Tax Act, 1961”

kindly tell us about the following allowances .. 1. medical outdoor 2. other allowance 3. self development allowance 4. washing allowance 5. quarter rent 6. electricity charges these are shown is salary slip of DMRC (delhi metro) employee..whether any deduction can be claimed form salary

Thanks for Reading, dear!

Medical Outdoor Allowance: it is already covered under standard deduction hence no separate deduction allowed for the same. Other Allowance: This is a broad term and its tax treatment depends on the specific purpose of the allowance. Self Development Allowance: This allowance could be for attending job-related training or courses. If the training directly relates to enhancing your skills for your current role at DMRC, the allowance might be deductible with proper documentation. However, if it’s for personal development not directly linked to your job, it probably wouldn’t be deductible. Quarter Rent: If you are occupying DMRC-provided accommodation, the rent deducted from your salary wouldn’t be a separate deduction for tax purposes. Washing Allowance: Unfortunately, the Income Tax Act doesn’t offer any specific deduction for general laundry costs Electricity Charges: Similar to the quarter rent, if these charges are for DMRC-provided accommodation, they wouldn’t be a separate deduction.

Hope it is helpful for you.

Food coupns are included in which section?

It will be considered as perquisites under section 17(2).

Hey people!!!!! Good mood and good luck to everyone!!!!!

Children Education Allowance

According to the latest available information, India’s literacy rate is 77.7%. This data was made publicly available by the NSO in September 2020 on the occasion of World Literacy Day. To further advance the cause of literacy, especially among the backward states, India’s Income Tax department provides a number of tax breaks collectively known as Children Education Allowance or CEA.

CEA Limits and Taxation

Most children education allowance exemptions are categorised under Section 80C of the IT Act.

The 7 th Pay Commission provides several major boosts to such allowances and tax breaks. That said, several states are yet to implement the 7CPC recommendations and follow older tax regimes.

Hence, child education allowance limits are slightly different across India’s states.

Also of note is the fact that for several salaried individuals, their children’s education fees, including tuition and hostel fees, plus allowances for purchasing recommended textbooks together form a separate component of their pay packages.

Children Education Allowance Rules

This section contains a gist of all provisions that govern the allowances.

Exemption for education and hostel charges

Children education allowance covers 2 broad areas of expenses for the concerned employee – the costs incurred for schooling and education per se , and hostel charges. It has been pointed out by several leading experts on education policymaking that many Indian children are forced to leave school due to excessive hostel or similar accommodation charges.

To any individual gainfully employed in India, the following allowances are allowed –

Education allowance : This is fixed at Rs. 100 each month for each child. Note that the exemption is limited only to 2 children. If CEA is applied for a 3 rd child, it will not be eligible for reimbursement.
Hostel charges allowance : Currently, this allowance is Rs. 300 per child, only for 2 children of a family.

Section 10(14) of the IT Act of 1961 covers the details of costs incurred.

Section 80C and tuition fee exemptions

Section 80C makes it amply clear which overheads will come under children education allowance section and which will not.

As of 2020, an individual can claim tax breaks on all sums paid as tuition fees deduction to schools, colleges, universities, and other educational institutions. Note that the exemption will be entertained only if these institutions are recognised by competent Central or State bodies.

No exemption will be entertained for payments of ‘ development fees’ , transportation costs, and any other amount which are not directly associated with educational purposes.

Furthermore, CEA is payable up to Standard 12 as of 2020. There have been a number of propositions from salaried individuals and education policy experts to extend this exemption to Graduate and Post-Graduate courses too.

However, there has been no word from the IT Department or the Central Government on these latter demands.

Eligibility criteria to apply for exemptions under Section 80C

To take full advantage of dedicated children education allowance income tax benefits, all salaried individuals must take cognisance of the eligibility criteria. They are the following:

The ambit of eligibility : Deductions are available only to biological parents, failing which a child’s legal guardian or sponsor can seek exemptions.
Maximum benefits allowed : Each parent or guardian can apply for a maximum deduction of Rs. 1.5 Lakh each year. According to existing provisions under Sections 80C , 80CCC , and 80CCD , the total amount to be considered for tax relief cannot exceed Rs. 1.5 Lakh per annum.

An example will make this point easier to comprehend. Since both parents can claim tax benefits under children education allowance of Rs. 1.5 Lakh each year, the total claim rises to 2 times this maximum deduction, i.e. Rs. 3 Lakh. However, tax relief will still remain at Rs. 1.5 Lakh only.

Deductions are available for children studying up to class 12. It is available even if the institution or school is affiliated with foreign higher-education facilities or universities.
Only full-time courses are eligible for these exemptions. Part-time educational courses are not admissible under existing rules.
Finally, the deduction can be claimed by a single parent too. Also, if a couple decides to adopt a child, they can apply for these tax benefits.

Procedure to Claim Tax Exemptions for CEA

There has been considerable debate over the complexity of claiming these exemptions under Section 80C . Vouchers are a way of claiming reimbursements; however, there is no uniformity on which type of vouchers will be acceptable.

The simplest process is the following –

To avail education allowance tax benefits : An employee must show a certificate duly attested by the head of the institution where the child is enrolled. This certificate must reflect the fact that the child is indeed a bonafide student of that establishment.
To avail hostel charge allowance : Again, a duly-attested certificate from the institution head with the total costs incurred for boarding and food mentioned explicitly must be provided by the employee. This will be proof that the enrolled child is indeed using hostel accommodation.

Note that all these details must also be reflected in Form 12BB before children education allowance is sought from the employer.

The 7CPC and Allowances

For those Government employees eligible for 7 th Pay Commission benefits, the following tables reflect the increase in monthly children education allowance .

Before 7CPC recommendations


	Rs. 1,500	Subject to increase with DA rates
	Rs. 4,500	-do-

After 7CPC recommendations


	Rs. 2,250	-do-
	Rs. 6,750	-do-

While these increments are considerable, they apply to very few children in India.

There is speculation that the Central Government will revamp the existing laws governing the CEA. However, no timeline has been declared for the same.

Until these benefits trickle down to the poorest and most marginalised portions of our society, there is little hope that India’s literacy rate will improve quickly. As of now, the ball is squarely in the court of the Ministry of Education, known formerly as the HRD Ministry, and the Department of Higher Education.

The National Policy of Education or NPE is expected to deal with some thorny issues in this insular field.

Vaishnavi Tech Park, 3rd & 4th Floor

Sarjapur Main Road, Bellandur

Bengaluru – 560103

ITR Filing Deadline Missed? Last chance to claim your tax refund.

ITR Filing Deadline Missed?

You still have chance to file late return.

what is section 10 14 child education allowance

Income Tax Deductions
Tax Benefits on Children Education Allowance, Tuition fees & School Fees under Section 80C

Deduction for Children Education & Tuition Fees - Tax Benefits Under Section 80C

India's literacy rate is 77.70% (2021 and 2022). To further promote education and healthcare, the Income Tax department has laid the framework for certain allowances, exemptions, and deductions that you can claim on the money earned in a financial year. One such allowance is Children's Education Allowance. There is a lot of relevant information that everyone who intends to pay tax under this category should know. Children’s education becomes a huge deal for the parents in terms of finance therefore, there are various benefits that the taxpayers can entertain.

The tax benefits that can be availed on children's education are as follows:

Childrens' Education Allowance
Hostel Expenditure Allowance
Tax deduction on tuition fees

Allowances for Children’s Education and Hostel Expenditure

Types of fee reimbursable under section 10(14), non-eligibility of tuition fees deduction section 80c, eligibility criteria to apply for exemptions under section 80c, eligibility for school or the institution your child is studying in.

Children Educational Allowance for Employees of the Central Government

Tax Deduction on Tuition Fees under Section 80C

Eligibility for tuition fee tax deduction under section 80c, educational expenses that cannot be claimed under tax deduction, how to claim the tax benefit on tuition fee paid for children, frequently asked questions.

As per Section 10(14) of the Income Tax Act 1961, special allowances are given to salaried individuals to cover their children's education and hostel expenses.

Children’s Educational Allowance: An allowance of INR 100 per month is allowed per child for up to two children studying in an educational institution.
Hostel Expenditure Allowance: An allowance of INR 300 per month per child for up to two children is given to those staying in hostels.

Note: You can claim this allowance only in the financial year the quoted Educational Fee was paid.

*The given allowance is provided to a person employed in India only.

** The allowance is provided only when expenses are incurred within India in accordance to Section 10(14) of the Income Tax Act 1961.

***The Allowances are subject to change as per any future Income Tax Act, 1961 amendments.

According to OM No. 12011/03/2008-Estt(AL), which is dated 2.9.2008, the types of Fee that are eligible for reimbursement are:-

Tuition Fee
Admission Fee
Special Fees charged for agriculture, electronics, music, or any other subject
Fee charged for practical work under the program of work experience
The fee is paid for using any appliances or any form of aid.

Section 80C of the Income Tax Act provides various deductions for certain eligible investments and expenses, but it does not allow a deduction for tuition fees. Here's the non-eligibility of tuition fees deduction under Section 80C:

Nature of Section 80C: Section 80C allows deductions for specified investments and expenses up to a maximum limit of Rs. 1.5 lakh in a financial year. It includes investments in instruments like Employee Provident Fund (EPF), Public Provident Fund (PPF), National Savings Certificate (NSC), Equity-Linked Savings Scheme (ELSS), and more.
Other Sections for Deductions: Taxpayers may explore other sections of the Income Tax Act to avail deductions for various expenses and investments not covered under Section 80C. For example, Section 80D offers deductions on health insurance premiums, and Section 80G allows deductions on donations made to certain charitable organizations.

No Minimum age is prescribed for claiming reimbursement of the Child Education Allowance fee(CEA) with respect to children admitted to nursery classes. While for physically challenged or specially-abled children, there used to be a minimum age barrier of 5 years for vocational training, which stands removed as of 21st February 2012. So there is no minimum age whatsoever for any CEA fee reimbursement claims.

The maximum age for any average child is 20 years for claiming reimbursement under CEA, while the maximum age for specially-abled children is 22 years.

* All of the above-mentioned information is in accordance with the information according to O.M. No.12011/07(ii)/2011-Estt. (AL) as dated 21.02.2012.

The School institution in question has to be recognized by the Central Government, State Government, or by UT Government by any University or a recognized educational authority having jurisdiction over the area where the institution in question is situated. These conditions also apply with respect to the children studying in the two classes before class 1, i.e., nursery, LKG, and UKG.

* All the data provided is in accordance to OM No.12011/03/2008-Estt.(AL) dated on 23.11.2009 as released by the Government of India.

Children's Educational Allowance for Employees of the Central Government

The Children's Education allowance is payable to “Central Government employees including citizens of Nepal and Bhutan, who are employees of Government of India, and whose children are studying native place ” for their children. However, there is a need for a certificate by the Indian Mission in the specific country confirming the recognition of this educational institution by the educational body with jurisdiction over the area where the institution is situated.

Apart from Children’s Education fee, a separate Tax Deduction can be claimed on the Tuition Fee paid by parents for their children's education.

This deduction includes any Tuition Fee paid at the time of admission or any other time to a registered School, College, or University based in India. This tax deduction can be claimed for the purpose of Full-time education under Section 80C of The Income Tax Act . It should be noted that this tax deduction benefit is available for both Salaried and Self-employed individuals.

Note: The tax deduction provision provided under Section 80C of The Income Tax act includes a wide foray of investments such as life insurance premiums, Public Provident Funds, mutual funds, etc., along with Tuition Fee, all with a cumulative limit of Rs.1.5 lakh.

Tax-paying individuals who wish to claim a Tax deduction on Tuition Fees under Section 80C must satisfy the conditions for eligibility given below:-

Individual Assesses only: This Tax deduction can only be claimed by individual assesses and not by HUF(Hindu Undivided Family) or Corporates.
Limit: The maximum permissible limit under Section 80C of the Income Tax Act 1961 is Rs.1.5 lakh with deductions eligible only for two children per assessee. If both parents are taxpayers, they can claim a tax deduction for up to 4 children. Otherwise, an individual assessee cannot claim for more than two children.
Child Education Only: Tax Deduction can be claimed towards educating the children exclusively. The fee paid towards educating anyone else, including spouses and the person themselves, cannot be claimed as deductions.
Full-Time Courses Only: Tax deduction on Tuition fees can only be claimed for full-time courses, be it school, graduation, or post-graduation. The fee paid towards part-time education cannot be claimed as a deduction.
Affiliated Institution: The school, college, or university the child is studying should have the necessary affiliation with the necessary educational body. This deduction is available only if the fees paid are in India.

There is a set of steps that you need to follow to Claim tax benefits on Tuition fees, and the following steps will guide you in claiming your tax benefit.

Submit the receipt issued by the educational institution for the payment made in the current financial year to the employer
Show the Tuition Fee paid in form 12BB before submitting the proof at the end of the financial year.
For any individuals other than salaried individuals, they have to claim the deduction under the VI-A schedule by showing the fee paid under section 80C during the filing of an income tax return .

Note: It should be noted that Educationa allowance under Section 10(14) and Tax Deduction for Tuition fees under Section 80C are two different provisions that can be claimed according to the prescribed limits under The Income Tax Act, 1961.

A tax deduction is not available towards payment of fees other than Tuition Fee, such as Donation Charges, Development Fee, Private Coaching Fees, Hostel Fee, mess charges, Library Fees, and henceforth.
A tax deduction cannot be claimed against the fee paid for part-time courses.
A tax deduction cannot be claimed for a school fee paid for a spouse, self, brother, sister, mother, or any other relative other than children.
The fee paid to any foreign institution for children’s education is not eligible to be claimed under this deduction.

You have learned about the benefits of claiming child education-related expenses under section 80C. Don’t miss this opportunity to save tax and invest in your child’s future. The deadline for filing ITR is 31st July, so hurry up and file your Income Tax Return now. Avoid the stress and errors of last-minute filing.

Q - Is the reimbursement on Children's Educational Allowance for a third child permissible if it has not been claimed for 1st and 2nd child? Because as per OM dated 2/9/2008, CEA is admissible for two school-going children. Does it mean any two school-going children?

According to OM No. 12011/03/2008- Est. (AL) dated 11 .11.2008 Children's Educational Allowance would be permissible in the case of more than two children only when the number of children exceeds two as a result of second childbirth being twins or more. This means that CEA is applicable for the case of 2 eldest surviving children, plus CEA for third or subsequent children will only be permissible in the case of multiple births at the time of second childbirth. Furthermore, CEA can also be claimed for a 3rd child in the case of failure of sterilization operation. Such reimbursement is admissible only for the first childbirth after the failure of the sterilization operation.

Q - Can CEA be claimed for a child for the same class twice?

CEA doesn’t depend on the performance of the children in his/her class. Even in the case of failure in a particular class, CEA is still permissible. However, CEA is not permissible in the case if the child enrolls in the same class in another school even after passing the class or if he/she leaves in the mid-session.

Q - Is there any age limit for reimbursement of CEA with respect to children studying nursery classes?

There is no age limit with respect to minimum age (even play school fees) permissible for claiming CEA reimbursement for children in nursery classes. However, there is a maximum age limit for the same, which is stated as 20 years for normal children and 22 years for physically challenged and specially-abled children.

Q - Is CEA admissible to Government Servants who cease to be in service due to retirement, dismissal, discharge or removal from service during the course of the academic year?

CEA is admissible in such cases until the end of the current running academic year. The payment for the same shall be made by the Government Office in which the under-question official used to work before these events, and this shall be regulated by the other conditions laid out by the CEA Scheme.

Q - Will the Children of a Government Service Employee who dies during service be still eligible for CEA reimbursement under the new CEA scheme?

If and when a Government servant dies while in service years, the children education allowance or hostel subsidy will still be admissible to his/her children in observance of other conditions for its grant provided the spouse of the deceased official is not employed in any of the services of the Central Government, State Government, Autonomous body, PSU, Semi-government Organization such as Municipality, Port Trust authority or any other organization that is either partly or fully funded by the Central or the State governments. In cases such as these, the CEA/Hostel Subsidy will be payable to the Children till a time when the employee should have actually received the same, subject to the condition that other terms and conditions are fulfilled as well. The payment for the case shall be made by the office in which the Government Servant in question had been working prior to his death, and this shall be regulated by the other conditions laid down under CEA Scheme.

Section 80G Deduction - Donations Eligible Under Section 80G
Income Tax Deductions List - Section 80C to 80U Deductions FY 2023-24 (AY 2024-25)
Income Tax Rebate under Section 87A: Claiming the 87A Rebate
Section 80DDB: What is Section 80DDB?, Diseases Covered, Claim Deduction & Certificate
Standard Deduction on Salary for Salaried Individuals & Pensioners
Section 80GGC - Deduction on Donations to Political Party
Section 17(2) of the Income Tax Act - Perquisites in Income Tax
Section 43B of Income Tax Act - All You Need to Know
Section 80EEA of Income Tax Act - Deduction for Interest Paid on Home Loan
Section 80U - Tax Deductions for Disabled Individuals
Which ITR Form Should I File?
What are the Deductions Under Section 80C to 8OU?
How to Calculate Income Tax on Salary with Example?
How to Check ITR Refund Status Online?
How to View and Download Form 26AS from TRACES Online?

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.

Mobile Validation

Submit Post
Budget 2024

Income Tax Exemption on prescribed allowances/ benefits | Section 10(14)

Section 10(14) of the Income Tax Act provides exemptions towards allowances and benefits granted to the employees to meet certain expenses. Rule 2BB of the Income Tax Rules prescribes the list of allowance which exempted under section 10(14)(i) of the Income Tax Act and section 10(14)(ii of the Income Tax Act .

The said exemption covered under section 10(14) read with rule 2BB is exhaustively explained under the current article.

Understanding provisions of section 10(14)(i) read with rule 2BB (1)-

Provisions of section 10(14)(i) provide exemption towards prescribed special allowance or benefits, granted to the employees, to meet expenses (wholly, exclusively, and necessarily) towards the performance of the official duty. The exemption is available only and only if the expenses are actually incurred by the employees.

Rule 2BB (1) lists down the prescribed allowances as-

1. Allowance granted to meet the cost of travel on tour or transfer.

2. Daily allowance granted to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duty.

3. Conveyance allowance granted to meet the expenses incurred on conveyance in the performance of duties of an office. However, free conveyance should not be provided by the employer.

4. Helper allowance granted to meet the expenses incurred on helper who is engaged for the performance of duties of an office.

5. Research allowance granted for encouraging the research, academic and training pursuits ineducational and research institutions.

6. Uniform allowance granted to meet the expenses incurred on purchase / maintenance of uniform for wear during the performance of duties of an office.

Understanding provisions of section 10(14)(ii) read with rule 2BB (2)-

Provisions of section 10(14)(ii) provide exemption towards the prescribed allowance granted to an employee to meet his personal expenses at either of the below place-

at the place where the duties of his office are ordinarily performed by him; or
at the place where he ordinarily resides.

The amount of exemption is lower of the following-

Amount received as allowance; or
Limit, as prescribed under rule 2BB (2).

Rule 2BB (2) lists down the prescribed allowances as-

1. Special compensatory allowance / climate allowance for working in a hilly area or high altitude or-

INR 800 per month for the prescribed areas.
INR 7000 per month for the Siachen area.
INR 300 per month for all the places located at the height of 1,000 meters or more above the sea levels.

2. Border area allowance / difficult or disturbed area allowance / remote locality allowance-

INR 1,300 per month for the prescribed areas.
INR 1,100 per month for installations in the Continental Shelf and Exclusive Economic Zone of India.
INR 1,050 per month for the prescribed areas.
INR 750 per month for the prescribed areas.
INR 300 per month for the jog falls in Shimoga (Karnataka).
INR 200 per month for the State of Himachal Pradesh, Assam, and Meghalaya.

3. Tribal or schedule or agency area allowance-

INR 200 per month for the states of Madhya Pradesh, Uttar Pradesh, Assam, Tamil Nadu, Karnataka, Tripura, West Bengal, Orissa, and Bihar.

4. Allowance to an employee working in a transport system to meet personal expenses while on duty- 70% of such allowance (maximum up to INR 10,000 per month).

5. Children Education allowance- INR 100 per month per child (up to a maximum of 2 children).

6. Allowance for employee’s child hostel expenses- INR 300 per month per child (maximum up to two children).

7. Compensatory field area allowance-

INR 2600 per month for the prescribed area of Arunachal Pradesh, Sikkim, Himachal Pradesh, Uttar Pradesh, and Jammu and Kashmir and throughout Manipur and Nagaland.

8. Modified Field Area Allowance-

INR 1000 per month for the prescribed area of Punjab, Rajasthan, Haryana, Himachal Pradesh, Arunachal Pradesh, Assam, Sikkim, West Bengal, Uttar Pradesh, Jammu and Kashmir, and throughout Mizoram and Tripura.

9. Counter-insurgency allowance to members of armed forces- INR 3,900 per month.

10. Transport allowance granted to a disabled employee to meet his travel expense from his place of residence to place of duty- INR 3,200 per month.

11. Underground allowance to employees working in underground mines- INR 800 per month.

12. High altitude / uncongenial climate allowance granted to armed force members operating in high altitude areas-

INR 1,060 per month for an altitude of 9000 – 15000 feet.
INR 1,600 per month for an altitude above 15000 feet.

13. Highly active field area allowance granted to armed force members- INR 4,200 per month.

14. Island allowance granted to armed force members-

INR 3,250 per month for areas of Andaman & Nicobar and Lakshadweep.

Table – Articles on Section 10 Exemptions


1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16	Income Tax Exemption on prescribed allowances/ benefits \| Section 10(14)
17
18
19
20
21
22
23
24

Income Tax Exemption
Tax Exemption
« Previous Article
Next Article »

Name: CA Sandeep Kanoi

Qualification: ca in job / business, company: taxguru consultancy / taxguru edu, location: mumbai, maharashtra, india, member since: 27 feb 2017 | total posts: 3871, my published posts, join taxguru’s network for latest updates on income tax, gst, company law, corporate laws and other related subjects..

Join Our whatsApp Group
Join Our Telegram Group

14 Comments

I am a war disabled ESM and getting disability medical pension. Is this disability pension exempted from income tax? Or the entire pension (service pension+disability pension) both are exempted from the income tax? Please help me. With regards 🙏

Sir, I am a PSU employee. I am getting a composite transfer grant from the office. Rs.38080/- is this amount taxable

sir, I received the amount for last four year arrear (2019-23) in oct 2022 for RISK AND HARDSHIP ALLOWANCES AS 6000 PER MONTH. working in armed forces (assam area). 1. Is this arrear is tax free? 2. if tax free then how it will be claimed in ITR.

Plz guide me. thank you

I am a PSU employee. .and I live in company Guest House, getting HRA in salary and I am paying each month HRA amount to Guest House through my credit card every month. Can I avail IT exemption on my total HRA amount paid to Guest House?

Hi, Can I enter Meal Coupon Amt of 26,200 (2200 * 12) within Section section 10(14)(i)

Please advise

Regards Hitesh Parsawala

I served in BSF (CAPF). I drawing RHA (risk hard area allowance). Request intimate RHA is exempted in income tax for CAPF personnel or otherwise

I spend around Rs 30000 for hostel expenses for my kid, how much can I claim for tax exemption u/s 14(ii).

300*12=3600 per child

I WAS TRNASFER FROM CHANDGARH TO MUMBAI. i HAVE INCURRED MY PERSONAL EXPENSES RS 75000. MAY I CLAIM ITR FOR TRNASFER CHARGES RS. 75000/-

sir, i have one que regarding Permanent travel allowance is it fully exempted or not ?

Sir,i am a government employee. . I being transfer ed, i took composite allwance, can i get karmukt this amount

Sir, I have been paid an amount of Rs.1,01000/- towards hard area allowances for the period of Mar’2012 to June’2014. Now my employer deduct the income tax on total amount received during the financial year 2020-21. Sir, please intimate if any exemption on the amount allowed or otherwise.

Thanks for valuable information & easily understable.

under rule 2BB point no 10, transport allowance exempted Rs. 1600 PM and 3200 for deaf and blind

Your email address will not be published. Required fields are marked *

Post Comment

Subscribe to Our Daily Newsletter

Latest posts, live course on grow your idt practice & preparation for gstat (gst tribunal), corporate social responsibility (csr)- complete guide, analysis of pre-import condition violation: chiripal poly films ltd. judgment, 111 faqs on provisions through finance bill (budget) 2024 in india, non-issuance of notices in form ben-4: mca imposes ₹17 lakh penalty, 1196 days delay in e-form ben-2 filing: mca levied ₹6 lakh penalty, disallowance u/s. 14a unjustified as own funds are in excess of investments made in funds yielding excempt income: itat ahmedabad, gst on annuity payable by nhai leviable only if invoice is raised or amount is received: madras hc, failure to include contact details on letterheads: mca levied ₹4 lakh penalty, failure to include din in documents summitted with roc: mca levied penalty, p2p investing vs traditional investments: a comparative analysis, featured posts, failure to provide explanations or comments in board report: mca imposes ₹16.5 lakh penalty, proposed amendments to finance (no. 2) bill, 2024: key changes, high credit card use can trigger income tax scrutiny, pan-aadhaar linkage failure: higher tds/tcs exemption for deceased deductees, live course: analysis of input tax credit from a litigation perspective, capital gain tax – holding period of the property, missed itr filing deadline: implications and next steps, detailed manual and faqs on filing of gstr-1a, popular posts, due date compliance calendar august 2024, empanelment for concurrent and stock audit with indian bank, form gstr 1 & gstr-1a- monthly statement of outward supplies | faqs, august, 2024 tax compliance tracker: income tax & gst deadlines, section 194t: tds on payment to partners by firms (partnership firms or llp), sale of property in india by an nri – tds provisions for buyers & sellers, gst compliance calendar for august 2024, amnesty provisions under section 128a w.r.t. section 73 demands, join 10 days online gst certificate course (litigation series) from aug 6th, 2024, ca final & intermediate may 2024 exam pass percentage & toppers.

August 2024
M	T	W	T	F	S	S

						11
12	13	14	15	16	17	18
19	20	21	22	23	24	25
26	27	28	29	30	31

Rules & Sections
Meaning & Definition
Income Tax Guides
Children Education Allowance

Education has the ability to enhance people’s quality of life at a geometrically faster rate. Every parent is concerned about children education. You are inspired to work harder each day because you want to provide your child with a high-quality education. Simply putting money in a savings account might not be enough to cover the cost of your inevitable educational expenses because going to school and pursuing further education are growing more and more expensive with each passing year.

Further, one needs to chip into their funds in order to spend more on children’s education. In this case, you require a wise investment strategy and tax planning . This might make it possible for you to help your kids achieve their academic goals while also reducing your tax burden. The Income Tax Act provides children education allowance to help you accomplish both objectives.

The Income Tax Department provides its taxpayer’s income tax deduction against the expenses made towards educating their children. The intent is to further contribute to the advancement of literacy, particularly in the backward states.

A resident individual who is under employment can claim a children education allowance.
The limit allowance is Rs 100 per month per child. A taxpayer claim allowance for up to 2 children only.
The taxpayer must incur expenses to claim the benefit of the allowance.
Other Child Education Deductions

Children Hostel Allowance

Income Tax – Section 10(14) of Income Tax Act 1961
Eligibility – Resident Individual
Limit of Deduction – Rs 100 per month per child, up to a maximum of 2 children.
The individual taxpayer must be employed in India. Furthermore, child education expenses must be incurred in India to claim this child education allowance as per the Indian Income Tax Act.

Tuition Fee

Income Tax – Section 80C of Income Tax Act 1961
Eligibility – An individual parent or guardian or sponsor
Limit – Each parent can claim a maximum of Rs. 1.5 lakh separately for each financial year for a maximum of 2 children. Therefore, a deduction for a maximum of four children can be claimed, i.e. 2 by each parent. Adopted Child’s school fees are also eligible.
This child education allowance or deduction is available only for full-time education courses that include nursery schools, creches, and play schools.
The deduction is available only on actual payment and not on a payable basis. For instance, if the fee is paid by the parent in April 2023 for the quarter ending March 2023, then the fee paid will be eligible for a deduction in FY 2023-24.
The fee can also be claimed by an Unmarried person/ divorced parent.

Interest on Education Allowance

Income Tax – Section 80E of Income Tax Act 1961
Eligibility – Individual/Legal guardian. HUF and any other taxpayer not eligible.
Limit – The total interest amount of the EMI paid during the financial year for a period of 8 consecutive years starting from the year in which the assessee starts paying interest.
Individuals must have taken loans for the higher education of spouses or children or for a student for whom the individual is a legal guardian.
Parents can easily claim this deduction for the loan taken for the higher studies of their children.
Loans must be obtained from a bank/financial institution, or an approved non-profit organization.
Moreover, loans taken from friends or relatives are not eligible for this deduction.
Loans were to be taken to pursue higher studies. It does not matter whether such education loans for higher education are made in India or outside of India.
This child education allowance or deduction is only available for eight years from the year you start repaying the loan or until the interest is paid in full, whichever comes first.

Plan your child Education with these children funds

ICICI Prudential Child Care Fund Gift Plan (G)
Axis Children s Gift No Lock in fund (G)
Aditya Birla Sun Life Bal Bhavishya Yojna fund (G)
Tata Young Citizen After 7 years fund (G)
SBI Magnum Children s Benefit Fund (G)

Cess on Income Tax

Angel Tax 2024 Guide: Meaning, Applicability and Exemption

All You Need to Know About Form 16A

GSTR 2A: All You Need to Know

GSTR 2B: All You Need to Know

GST Types: What are the types of GST in India?

Posted on 24 Oct, 2023

Last updated October 24, 2023

See all 6 sources / citations

Anjana Dhand

Anjana Dhand is a Chartered Accountant who brings over 5 years of experience and a stronghold on finance and income tax. She is a writer by day and reader by night. You can find her churning content at express speed. She is on a mission to stamp out unawareness and uncomplicate boring personal finance blogs to sparkle. Anjana believes in the power of education in making a smart financial decision.

Practical Insights For Wealth Creation

Our weekly finance newsletter with insights you can use

Your privacy is important to us

Show comments

Please enter valid email address

Thanks for subscribing to our newsletter! You will start getting them soon.

Get the Scripbox App

View, Analyse, Manage, and Grow your wealth with just one app.

Practical wealth creation insights for you.

AI Summary to Minimize your effort

Section 10 Of Income Tax Act: Exemptions, Allowances & How To Claim It?

Updated on : Jul 30th, 2024

The Government of India provides some exemptions in order to reduce your income tax burdens. Section 10 of the Income-tax Act, 1961 talks about those exemption provisions and the terms and conditions on which one can avail a tax exemption. Here’s more on this matter.

What is Section 10 of Income Tax Act?

While calculating the tax liability of an individual, there are certain income sources that do not form a part of the total income. Section 10 of the Income-tax Act,1961 includes all those exemptions that a taxpayer can get while paying income tax.

What are Exemptions Under Section 10?

Here is a list of exempted income under Section 10 :

Section 10(13A) of the Income Tax Act

Section 10(13A) of the Income Tax Act covers House Rent Allowance (HRA) . The part of your salary you receive to cover house rent and accommodation expenses is exempted from taxation.

However, a few exceptions are included in Section 10(13A) Rule 2A . The exemption is allowed for the least of the following amounts:

Actual HRA received
50% of [basic salary + DA] for those living in Delhi, Mumbai, Chennai, Kolkata or 40% of [basic salary + DA] for those living in other cities
Actual rent paid (-) 10% of [basic salary + DA]

Under Section 10(13A) of the Income Tax Act, the following types of expenses are covered under House Rent Allowance (HRA) for exemption from income tax:

Rent paid: The actual rent paid by the taxpayer for the residential accommodation they occupy.
Brokerage or commission: Any brokerage or commission paid to a real estate agent or broker for securing the rented accommodation.
Maintenance charges: Expenses incurred towards maintenance charges for the rented accommodation, such as society maintenance fees or charges for common fad
Lease agreement costs: Costs associated with preparing and registering the lease agreement, if applicable.

It is important to note that only expenses directly related to the rental accommodation occupied by the taxpayer are eligible for exemption under Section 10(13A) of the Act.

Let’s take a look at the below example.

An employee living in Mumbai with a basic salary of Rs. 40,000 per month, receiving an HRA of Rs. 20,000 per month, and paying rent of Rs. 15,000 per month.

Condition 1: Actual HRA received - Rs. 2,40,000 (Rs.20,000 per month)

Condition 2: Metro city 50% of [basic salary + DA] - Rs. 2,40,000 (50% of Rs.4,80,000)

Condition 3: Actual rent paid (-) 10% of (basic salary + DA) - Rs.1,32,000 (Rs.1,80,000 – Rs.48,000)

Least of the above is the amount of Exempted HRA - Rs. 1,32,000, HRA chargeable to tax - Rs. 1,08,000 (Rs. 2,40,000 - Rs.1,32,000).

Section 10(5) of the Income Tax Act

Section 10(5), or leave travel allowance exemption , is applicable for individual taxpayers. The LTA exemption applies only to the domestic travel expenses, such as airfare, train or bus fare, incurred by the employee. Other expenses, such as transportation within the destination, sightseeing, hotels, and food, are not covered. Additionally, the exemption is limited to LTA provided in your CTC by the employer. For example, if an employee is given LTA of Rs 30,000 and incurs travel expenses of Rs 20,000, only the amount actually spent on travel would be exempt from taxes and the remaining Rs 10,000 would be included as taxable income.

Section 10(26) of the Income Tax Act

If you are a member of a Scheduled Tribe in Tripura, Nagaland, Mizoram, Manipur, and Arunachal Pradesh, you are eligible for tax exemptions against income earning either from any source in the states mentioned above or earning through dividends or interest on securities under Section 10(26) Of the Income Tax Act.

Section 10(14)(i) of the Income Tax Act

This section provides exemptions for expenses incurred due to your employer’s business. It includes traveling, conveyance, research allowance and more, provided such expenses are actually spent for the given purposes.

Section 10(11) of the Income Tax Act

Under this section, you receive exemptions for interest from a provident fund upon resignation or retirement.

Note: From 1st April 2021 onwards, the exemption under section 10(11) will not apply to interest income accrued during the previous year on contributions exceeding Rs. 2,50,000 made by the person/employee to that fund in any previous year.

Section 10(34) of the Income Tax Act

This section includes exemptions from the dividends that you receive from investing in an Indian company. However, this exception is only limited to an amount of Rs.10,000, exceeding which you have to pay tax.

Note: This is applicable only for the dividends received till 31 st March 2020 .

Section 10(26AAA) of the Income Tax Act

If you are a Sikkimese individual earning either from any source in Sikkim or earning through dividends or interest on securities, this part of your income comes under tax exemption under Section 10(26AAA).

Section 10(38) of the Income Tax Act

When you get long-term capital gains by selling equity shares of an equity-oriented mutual fund, it is exempted from Income Tax calculation. However, the Securities Transaction Tax must be paid.

Note: This is applicable only for the long term capital gain earned till 31 st March 2018.

Section 10(23C) of the Income Tax Act

Educational or medical institutions whose aggregate annual receipts do not exceed Rs.5 crore are eligible for exemption under this section.

Section 10(37) of the Income Tax Act

This section provides exemptions for capital gains due to the compulsory acquisition of urban agricultural land, provided the below conditions are fulfilled:

land should be used for agricultural purposes for 2 years before its sale date
compulsory acquisition scheme should be approved by central government or RBI

Section 10(10A) of the Income Tax Act

If you are a Government employee, under this section, you receive tax exemption on the money you get from accumulated pensions.

Section 10(10D) of the Income Tax Act

Under this section, you get an exemption for the income you receive from a life insurance policy or bonus. However, the below insurance policies shall not be eligible:

Life insurance policy has taken on a specially-abled dependent family member
Key man insurance policy
Insurance policies where the premium amount is more than 10% of the sum assured.

Section 10(35) of the Income Tax Act

Any income that you gain from the sale of specified mutual fund units.

Note: This is applicable only for the income earned till 31 st March 2020.

Section 10(10) of the Income Tax Act

Any income by way of gratuity received by the government, but in the case of employees working in the private sector, depends on whether they are covered under the Payment of Gratuity Act or not. Click here to know more

Internet allowance exemption under Section 10

Under Section 10(14), the Internet allowance provided by your employer is exempted from taxation.

Food allowance exemption under Section 10

Section 10(14) also includes a tax exemption of Rs.26,400 in a year for food allowance provided by your employer assuming two meals a day and 22 working days in a month.

How Do I Claim Section 10 Exemptions On My Taxes?

If you are wondering how to claim an exemption under Section 10 , you can do it by filing an income tax return. As the exemptions are income based, you must disclose the income earned and the corresponding exemption applicable.

Is Leave Encashment Exempted From Income Tax?

Leave encashment received at the time of their employment is fully taxable and forms part of ‘Income from Salary'.

However, if you are a government employee (State or Central), your income from leave encashment will not be taxable at the time of resignation or retirement.

Alternatively, if you are a private sector employee, the government will consider your income from leave encashment after resignation or retirement as ‘Income From Salary' and, thus, will be taxable. But, there will be exemptions under Section 10(10AA) of the Income Tax Act. There will be a tax on the amount remaining after exemptions according to your income tax slab.

Now that you are aware of Section 10 benefits , you can make use of them in order to get tax relief. However, consult a tax professional before filing a claim under this section.

Frequently Asked Questions

In order to be eligible for exemptions under Section 10(10D), you must have a life insurance policy; the value received upon its maturity, including the bonus component, can be claimed as an exemption.

No, Section 10(13A) of the Income Tax Act only provides exemptions for a part of the HRA, but it also has a few limitations. To know more, click here.

Section 10(10C) exempts the income received on voluntary retirement up to maximum amount of Rs.5 lakh.

Section 10(9) exempts the income of family members of foreign employees under the Cooperative Technical Assistance Program.

The amount received upon maturity of the Sukanya Samriddhi Account is exempt from tax without any limit.

The amount upto 60% of the value received from the NPS upon retirement or closure of the account shall be exempt from taxes and upon partial withdrawal upto 25% of the contribution made shall be exempt.

Nom if you opt for new regime, you will not be eligible to claim exemption u/s 10.

About the Author

Mohammed S Chokhawala

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

Quick Summary

Was this summary helpful.

Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

Cleartax is a product by Defmacro Software Pvt. Ltd.

Company Policy Terms of use

Data Center

SSL Certified Site

128-bit encryption

Banking and Financial news
Financial Analysis
Foreign Exchange
Indian Financial System
Information Technology
Investment and Insurance
Loans and Advances
Mortgage Laws
Negotiable Instrument Act
Risk Management

Tax Benefits available on Children Education Allowance, Hostel allowance, Tuition fees

Tax Benefits available on Children…

Updated: As amended in finance act 2020

As per section 10(14) of Income-tax, children education allowance and Hostel Expenditure Allowance are eligible for deduction available to individuals employed in India.

: Up to Rs. 100 per month per child up to a maximum of 2 children is exempt

:Up to Rs. 300 per month per child up to a maximum of 2 children is exempt *Only if expenses are incurred in India as per Section 10(14) of the income tax act)

The following facilities is taxable only in the hands of specified employees* [See note]

Educational Facility extended to	Taxable Value of perquisite
Children	: Cost of such education in similar schools less Rs. 1,000 per month per child (irrespective of numbers of children) less amount recovered from the employee. : Amount incurred less amount recovered from employee (an exemption of Rs. 1,000 per month per child is allowed) Provided in any other school:
Other family members	: Cost of such education in similar school less amount recovered from employee : Cost of such education incurred

For other educational facility:

Particulars	Taxable value of perquisites
Reimbursement of school fees of children or family member of employees	Fully taxable
Free educational facilities/ training of employees	Fully exempt

Note: Specified employee means an employee whose monetary income* under the salary exceeds Rs. 50,000 or a director-employee, or an employee who has a substantial interest (i.e. beneficial owner of equity shares carrying 20% or more voting power) in the employer-company. (*Monetary Income means Income chargeable under the salary but excluding perquisite value of all non-monetary perquisites).

Deductions under section 80C of IT act:

A salaried individual who opts for the old tax rule for assessment of tax for the FY 2020-21, income tax slabs remains to him/her the same as the previous financial year 2019-20 (AY 2020-21). Individual parent or guardian or sponsor can claim deductions on the amount paid as tuition fees to a university, college, school or any other educational institution under chapter VI-A section 80 C. The deduction is available only for full-time education courses that include a nursery school, crèches, and playschools. Each parent can claim a deduction of up to Rs.1.50 lakh separately every financial year. The aggregate amount of deduction under section 80C, 80CCC, and 80CCD shall not exceed INR 1, 50,000 for the individual parent. An Adopted Child’s school fees are also eligible for deduction. The deduction is available only for students studying in the institution, college, or university situated in India. The deduction can also be claimed for students studying in a foreign university-affiliated institution which is situated in India. The deduction is available to a maximum of 2 children for each individual. In other words, a maximum of 4 children’s tuition fee deduction can be claimed by two parents, i.e. 2 children by each parent.

Tax deduction on Interest paid on Education Loan: An individual can claim income tax deduction on interest paid on education loan availed for self, spouse or his/her children u/s 80 E of I.T. Act. The guardian appointed by the court for a minor student is also eligible for income tax deduction on interest paid on education loan under the same section. One more benefit is that there is no upper limit for claiming deduction either on the amount of interest paid or rate of interest paid. The deduction can be claimed up to 8 years or closure of the loan whichever is earlier. If the interest is paid during the moratorium period, the time limit of 8 years begins from the date of the first repayment of interest on the loan. However, the tax benefit is restricted for education loan availed from the bank, notified financial or charitable institutions. The education loan availed from the employer, family and friends does not come u/s 80E. The deduction under section 80E is also allowed for education loan availed for studies abroad.

Source: Income Tax Department

FAQs on education loan scheme

Author: Surendra Naik

Exemptions for Children's Education and Hostel Expenditure

Deduction for tuition fees under section 80c, eligibility for tuition fees deduction under section 80c, categories of fees eligible for reimbursement under section 10(14), categories of fees that are not eligible for reimbursement under section 10(14), for salaried individuals, for non-salaried individuals, criteria for eligibility of school or institution for your child's education, children's educational allowance for central government employees, 1. can i claim the children's education deduction if i have adopted a child, 2. what constitutes tuition fees under section 80c, 3. is there a restriction on the age for claiming children's education allowance, 4. is it possible to claim children's education allowance (cea) twice for the same class, 5. is there an age limit for reimbursement of the allowance for children attending nursery classes, tax benefits on children's education allowance, tuition fees and school fees.

Education is a paramount investment that parents undertake for their children. Nonetheless, the expenses associated with school fees pose a considerable financial strain on families.

To mitigate this strain and foster literacy, the government extends a tax Deduction for Tuition Fees paid on behalf of children. This tax benefit encompasses children's education allowance, hostel expenditure allowance, and deductions for tuition fees. This article helps you understand the tax advantages available for children's education, outlining eligibility criteria and the process for claiming them.

Salaried taxpayers in India are eligible for the following exemptions:

Children's Education Allowance : ₹100 per month per child, with a maximum allowance for two children.

Hostel Expenditure Allowance : ₹300 per month per child, also capped at a maximum of 2 children. (Note: These exemptions apply only if the expenses are incurred within India, as stipulated by Section 10(14) of the income tax Act.)

Under Section 80C , parents are entitled to claim a deduction for the amount paid as tuition fees to a university, college, school, or any educational institution. However, other fee components, such as development fees and transport fees, are not eligible for this deduction. In a given financial year, individuals can avail of a maximum deduction of ₹1.5 lakh for payments made towards tuition fees. This deduction can be claimed alongside deductions for expenses like:

Provident fund contributions
Pension contributions
Other eligible items

Get More Updates! Talk to our investment specialist Disclaimer: By submitting this form I authorize Fincash.com to call/SMS/email me about its products and I accept the terms of Privacy Policy and Terms & Conditions. Processing... Click Now

When talking about tuition fees, only payments made for the full-time education of the child qualify as tuition fees. However, certain payments are not considered tuition fees, such as development fees, donations or charitable contributions, fees for private coaching, and other miscellaneous expenses like hostel charges, mess fees, library fees, or similar payments.

Individuals paying tuition fees for the education of their children can claim a tax deduction under Section 80C, provided they meet certain conditions outlined below:

Eligible Applicants : This deduction is available exclusively to parents. However, fees paid for the education of an adopted child also qualify for deduction.

Number of Children : Each parent can claim a deduction of up to ₹1.5 lakh for a maximum of 2 children individually. Consequently, if both parents are taxpayers, they can collectively claim deductions for up to 4 children.

Maximum Limit : The maximum deduction allowed is ₹1.5 lakh per financial year across Sections 80C, 80CCC, and 80CCD for a taxpayer.

Maximum Age : There is no upper age limit for the child to claim this deduction.

Educational Institution : The institution must be located within India and can include universities, colleges, schools, or any other recognised educational establishments.

Mode of Deduction : The deduction is applicable only on actual payments and not on a payable Basis . For example, if a parent pays the fee in April 2024 for the quarter ending March 2024, the fee paid will be eligible for deduction in the financial year 2024-25.

The following types of fees are deemed eligible for reimbursement:

Tuition fees
Admission fees
Special fees levied for disciplines such as agriculture, electronics, music, or any other subject
Fees associated with practical work conducted under the program of work experience
Fees paid for the utilisation of any appliances or aids

The following expenses are not considered as part of tuition fees:

One-time school admission charges
Annual charges
Transportation costs
Charges for extra classes
Fees for curricular activities
Charges for smart classes
Costs for sports and activities classes
Expenses for coaching or private tuition
Hostel fees
Mess charges
Boarding fees
Library fees
Stationery expenses
Excursion fees
School/college donations
Charges for school/college development work
Late school payment fees
Readmission fees

Please note that this list is not complete.

Additionally, there are other exclusions where, despite being considered as tuition fees, expenses cannot be claimed for deduction under Section 80C. These exclusions include:

Part-time Courses : The deduction is not applicable for payments made towards part-time courses.

Family Members' Fees : Payments made towards school fees for oneself, spouse, siblings, parents, or other relatives do not qualify for this deduction.

Foreign University Fees : Fees paid to a foreign university outside India are not eligible for this deduction.

Claiming Tax Exemption for Children's Education Allowance and Tuition Fee Deductions

Jotted down below are some points to be noted to claim tax exemption for children's education allowance and tuition fee deductions:

Submission to Employer : Salaried individuals should provide the fee Receipt issued by the educational institution to their employer by the end of the year. This is typically done during the submission of investment proofs.

Declaration in Form 12BB : Additionally, they must declare these expenses in Form 12BB, which employers often use to capture details of various deductions and allowances.

Claim under Section 80C : Non-salaried individuals can claim the tuition fee deduction under Section 80C in the VI-A schedule while filing their Income Tax Return ( ITR ).

No Submission Required : Unlike salaried individuals, non-salaried taxpayers are not obliged to submit bills or receipts while filing their ITR. However, retaining these receipts as evidence to support their claims is advisable.

You must know that children's education allowance and tuition fees are different deductions and can be claimed separately, each subject to its respective limits and conditions as outlined in the tax regulations.

The school or institution where your child is enrolled must meet certain eligibility criteria. It should be recognised by the Central Government, State Government, or Union Territory (UT) Government or accredited by any University or a recognised educational authority with jurisdiction over the area where the institution is located. These conditions also apply to children enrolled in the two classes preceding Class 1: Nursery, LKG, and UKG.

The Children's Education Allowance is provided to Central Government employees, including citizens of Bhutan and Nepal employed by the Government of India, for the education of their children studying at their native place. However, a certificate from the Indian Mission in the respective country is required to confirm the recognition of the educational institution by the educational authority having jurisdiction over the area where the institution is located.

Children's Education Allowance is a vital support mechanism for parents, facilitating their children's educational journey. Despite the complexities surrounding eligibility and reimbursement, CEA remains a significant resource in ensuring that every child has the opportunity to thrive academically, regardless of economic constraints.

Frequently Asked Questions

A: Yes, the adopted child's school fees are also eligible for deduction.

A: For expenses incurred on the tuition fees of up to 2 children, a taxpayer can avail a maximum deduction of ₹1.5 lakh.

A: No age limit is specified for claiming children's education allowance under the Income Tax Act. Nevertheless, it's important to note that the Children Education Allowance Scheme (CEA), designed for Central Government employees, does specify an age limit. It's essential to understand that this scheme is different from tax-related provisions. The Income Tax Act has established separate criteria for providing tax benefits.

A: CEA eligibility does not depend upon a child's performance in their class. Even in the event of a failure in a specific class, CEA remains permissible. However, CEA cannot be claimed if the child enrols in the same class at another school after successfully passing or if the child leaves the school midway through the session.

A: No minimum age limit exists for claiming CEA reimbursement, even for play school fees, for children enrolled in nursery classes. However, there is a maximum age limit set at 20 years for typically developing children and 22 years for children with physical challenges or special needs.

Reader Interactions

Latest DoPT Orders 2024

Central govt holiday list 2024.

Latest Central Government Employees News

What is Section 10 of Income Tax Act?

Section 10 of the Income Tax Act is important for employees because it provides various tax exemptions and deductions that can benefit them. These exemptions help reduce the amount of income that is subject to taxation, ultimately leading to lower tax liability for employees.

Some of the key provisions in Section 10 include exemptions for Leave Travel Concession (LTC), pension payments, voluntary retirement compensation, tax-free withdrawals from specific accounts, and exemptions for certain allowances. These provisions allow employees to save on taxes and increase their take-home pay.

Tax laws can be confusing, but there’s one provision you should know – Section 10 of the Income Tax Act. It explains exemptions and deductions that aren’t counted as taxable income. Understanding Section 10 can help you lower your tax bill.

Table of Contents Show

Section 10 of the income tax act, section 10(5) leave travel concession, section 10(10a) pension, section 10(10c) payment at the time of voluntary retirement , section 10(11a) payment from account opened in accordance with the sukanya samriddhi account rules, 2014, section 10(12b) partial withdrawal from nps , section 10(10d) amount paid on life insurance policy, section 10(13a), section 10(14), section 10(16) educational scholarship, section 10(23c) income of educational institutions and hospital, section 10(26) income of a member of a scheduled tribe, section 10(26aaa) income of a “sikkimese” individual , section 10(38) exempts long-term capital gains from the transfer of equity shares, mutual fund units, or business trust units subject to securities transaction tax., section 10(37) capital gains in case of compulsory acquisition of urban agricultural land , what is the maximum exemption limit provided under section 10 of the income tax act.

In this blog, we’ll explain Section 10, explore the types of income that are exempt, and show you how to benefit from these exemptions.

Section 10 of the Income Tax Act provides tax exemptions to salaried professionals by excluding certain income sources from their total income. These exemptions aim to reduce the tax burden on individuals and promote specific activities or categories of income. Common exemptions under Section 10 include house rent allowance (HRA), leave travel concession (LTC), medical allowances, gratuity, pension, and allowances provided by the employer. By excluding these income sources, Section 10 allows salaried professionals to avail tax benefits and enjoy higher take-home pay, thus promoting savings and financial well-being

Exemptions Allowed under Section 10 for Salaried Employees

Leave Travel Concession, as stated in Section 10(5), allows employees to claim exemption for their travel expenses while on leave. This exemption applies to both Indian and foreign employees. It covers the value of any travel concession or assistance received from the employer for the employee and their family members, when traveling within India.

For air travel, the exemption amount will be either the economy class air fare of the National Carrier by the shortest route or the actual amount spent, whichever is lower.
For rail travel, the exemption amount will be either the air-conditioned first class rail fare by the shortest route or the actual amount spent, whichever is lower. The same rule applies if the journey is performed by any other mode of transport, as long as the place of origin and destination are connected by rail.
If there is recognized public transport available, the exemption amount will be either the first class or deluxe class fare by the shortest route or the actual amount spent, whichever is lower. If there is no recognized public transport, the exemption amount will be either the air-conditioned first class rail fare by the shortest route (considering the journey as if it were performed by rail) or the actual amount spent, whichever is lower.

Pension, as mentioned in Section 10(10A), has certain tax exemptions for government and non-government employees. For government employees, if they receive a lump sum amount as commuted pension instead of monthly payments, the entire amount is exempt from tax. However, this exemption only applies to the commuted pension, not the monthly pension. For non-government employees, the exemption for commuted pension varies based on whether they receive gratuity or not:

If a non-government employee receives gratuity along with the commuted pension, one-third of the total commuted pension amount is exempt from tax.
If a non-government employee does not receive gratuity, half of the total commuted pension amount is exempt from tax.

Under Section 10(10C), if you receive compensation during voluntary retirement or termination of service, you may be exempt from paying taxes on it. Certain conditions apply, including a maximum exemption amount of Rs. 5,00,000.

According to Section 10(11A), any payment from an account opened under the Sukanya Samriddhi Account Rules, 2014, is exempt from tax. This means that both the interest earned and the withdrawals made from this account are not subject to taxation under Section 10(11A).

Section 10(12B) allows for tax-free partial withdrawals from the National Pension System (NPS). To qualify, the withdrawn amount must not exceed 25% of the employee’s total NPS contribution and must comply with the specified terms and conditions.

Under Section 10(10D), money received from a life insurance policy, including bonuses, is tax-exempt. The exemption applies to policies issued before March 31, 2003, and for policies issued after that date, the premium must not exceed a certain percentage of the sum assured. Additional benefits received beyond the sum assured are not considered. Money received upon the insured person’s death remains tax-exempt without conditions.

House Rent Allowance (HRA), as mentioned in Section 10(13A), has certain exemptions based on different factors. The exemption for HRA will be the lower of the following:

50% of the salary if the residential house is in Mumbai, Kolkata, Delhi, or Chennai. If it’s in any other place, the exemption will be 40% of the salary.
The actual HRA received by the employee during the time they stayed in the rented accommodation in the previous year.
Rent paid that exceeds 10% of the salary.

The salary considered includes the basic salary, dearness allowance for retirement benefits, and commission based on a fixed percentage of the employee’s achieved turnover. Other allowances and perquisites are not included. The salary is calculated based on the period of occupancy in the previous year. Any payments not related to that year or the duration of staying in the accommodation are not included.

According to Section 10(14), certain allowances or benefits provided to employees are exempt from tax, subject to specific limits. Here are the details:

Allowance/ Benefit	Exemption Limit
Children Education Allowance	Up to Rs. 100 per month per child, max. 2 children
Hostel Expenditure Allowance	Up to Rs. 300 per month per child, max. 2 children
Transport Allowance (blind/handicapped employees)	Rs. 3,200 per month
Allowance for employees in transport business	Lower of 70% of allowance or Rs. 10,000 per month
Conveyance Allowance	Exempt to the extent of official expenditure
Travelling Allowance	Exempt to the extent of official expenditure
Daily Allowance	Exempt to the extent of official expenditure
Helper/Assistant Allowance	Exempt to the extent of official expenditure
Research Allowance	Exempt to the extent of official expenditure
Uniform Allowance	Exempt to the extent of official expenditure
Special compensatory Allowance (Hilly Areas)	Rs. 300 to Rs. 7,000 per month (varies by location)
Difficult Area Allowance	Rs. 200 to Rs. 1,300 per month (varies by location)
Tribal Area Allowance	Up to Rs. 200 per month (specific states)
Compensatory Field Area Allowance	Up to Rs. 2,600 per month (specific conditions/locations)
Compensatory Modified Area Allowance	Up to Rs. 1,000 per month (specific conditions/locations)
Counter Insurgency Allowance	Up to Rs. 3,900 per month (specific conditions/locations)
Underground Allowance	Up to Rs. 800 per month (for employees in underground mines)
High Altitude Allowance	Up to Rs. 1,060 per month (altitude 9,000 to 15,000 feet)
	Up to Rs. 1,600 per month (altitude above 15,000 feet)
Highly Active Field Area Allowance	Up to Rs. 4,200 per month (specific conditions/locations)
Island Duty Allowance	Up to Rs. 3,250 per month (Andaman and Nicobar, Lakshadweep)

Under Section 10(16), any amount received as an educational scholarship, specifically meant to cover the cost of education, is exempt from tax for the recipient. This means that the scholarship amount does not need to be included as taxable income for the recipient.

According to Section 10(23C)(iiiad), if a university or educational institution operates solely for educational purposes and not for profit, its income will be tax-exempt. However, this exemption only applies if the institution’s total annual receipts do not exceed Rs. 5 crore.

As per Article 366(25) of the Constitution, if a person belongs to a Scheduled Tribe and meets the following conditions, their income will be exempt from tax:

The person resides in certain areas, which include the states of Nagaland, Manipur, Tripura, Arunachal Pradesh, Mizoram, or specific districts in North Cachar Hills, Mikir Hills, Khasi Hills, Jaintia Hills, and Garo Hills, or in the Ladakh region of Jammu and Kashmir.
The exemption applies to income earned in these areas or income derived from dividends or interest on securities from any area.

As per Section 10(26AAA), the income of an individual from Sikkim is exempt from tax. This includes any income earned within the state of Sikkim itself. Additionally, any income in the form of dividends or interest on securities, whether generated in Sikkim or elsewhere, is also exempt from tax for Sikkimese individuals.

If you sell stocks, mutual fund units, or units of a business trust that are subject to securities transaction tax, you may not have to pay taxes on any profits you make from the sale. This applies if you hold the asset for a long time and the sale happens on or after October 1, 2004.

Under Section 10(37), individuals or Hindu Undivided Families (HUFs) can be exempt from paying capital gains tax when their agricultural land in an urban area is compulsorily acquired, and they receive compensation on or after April 1, 2004. This exemption applies if the taxpayer (or their parents, in the case of an individual) used the land for agricultural purposes for at least 2 years before the transfer.

Under Section 10 of the Income Tax Act, the maximum exemption limit for individuals below 60 years of age is Rs. 2.50 lakhs. For individuals between 60 and 80 years of age, the limit is Rs. 3 lakhs. And for individuals aged 80 years or more, the limit is Rs. 5 lakhs. It’s important to note that the higher exemption limits of Rs. 3 lakhs and Rs. 5 lakhs apply only to individuals who are residents in India.

Disclaimer: Nothing on this blog constitutes investment advice, performance data or any recommendation that any security, portfolio of securities, investment product, transaction or investment strategy is suitable for any specific person. You should not use this blog to make financial decisions. We highly recommend you seek professional advice from someone who is authorised to provide investment advice.

Sonakshi Patel

What is chapter 10 of the income tax act, what does section 10 of the income tax act pertain to for charitable trusts, what is the significance of section 10(10)(iii) of the income tax act, what are the five types of income exempted under section 10, what are the exemptions available to salaried employees under section 10 of the income tax act, which allowances in salary are taxable, what is considered as a special allowance in salary, can petrol bills be claimed for income tax purposes, related news, rbi hikes upi tax payment limit to rs 5 lakh, upi limit for tax payments increased from rs 1 lakh to rs 5 lakh.

The Reserve Bank of India (RBI) has increased the UPI limit for tax payments from Rs 1 lakh to Rs 5 lakh. This means you can now pay larger tax amounts quickly and easily using UPI.

Effective immediately, taxpayers can transfer up to Rs 5 lakh in a single UPI transaction for paying taxes. This move aims to simplify the tax payment process and encourage digital payments. Additionally, the RBI has introduced 'delegated payments' through UPI, allowing users to authorize another person to make UPI payments from their account.

These measures are expected to make tax payments more convenient and boost digital payment adoption across India.

Received Income Tax Notice? Here’s Why

Special Allowance Under Section 10

The Income Tax Act not only levies taxes on our income but it also has certain provisions that offer a number of tax exemptions. Many of such tax rebates and exemptions come under Section 10 of the Income Tax Act.

Most salaried employees receive a specific amount of salary that includes certain allowances too. Section 10 of the Income Tax Act , 1961, offers a long list of tax exemptions that are made especially for salaried people. These allowances are greatly beneficial in taking some load off the shoulders of the breadwinner. In this article, we will confer about the special allowances under Section 10. For that let us first understand the meaning of Section 10.

Special Allowances under Section 10 for Salaried Employees

The tax rebate that is given to salaried people falls under this section of the Income Tax Act, 1961. Here is a list of the exemptions:

Special Individuals Receiving Allowances Exempt

Section 10 (14) also grants a special allowance exemption that is considered as a special allowance given to specific individuals, these are:

The allowances that are granted to the Judges of High Court.
The allowances that are given to the employees of UNO
The Sumptuary allowances that are received by the High Court and Supreme Court Judges
The allowances that are granted to the government employees who are citizens of India but are working abroad.

Section 10 (14) (i)

Under Section 10 (14) (i), an allowance received by the employee that is given to meet expenses totally and necessary for the performance of official duties (generally called ‘per diems’), for the expenses that he has already/has to incur, are exempted from taxes. In simple words, the exclusion is granted on the basis of:

Amount of allowance
The amount that is actually used for the purpose

The other important tax exemptions under Section 10 are as follows:

Section 10(10D) - Life Insurance

Any sum that is received under a life insurance plan, be it Death Benefit, Maturity Benefit or any bonus, is tax-free under Section 10.

Section 10 (10)(i) Exemption under Gratuity

The Gratuity received, whether it is through the state or the Centre, that is received by a government employee are full tax-exempted. The amount must be at least one of the below

15 days of salary multiplied by years of service.
INR 20 lakhs or the minimum amount
The amount that is actually received

For the salaried people who are not covered under the Gratuity Act, the exemption is to the least of:

Average of Half Month salary for every year of service.
INR 10 lakh
Gratuity that is received

Section 10(13a) HRA

An employee who receives House Rent Allowance can get an exemption to the least of the following:

HRA that is received
The rent that is paid minus 10% of his salary
50% of salary for the 4 metro cities-Delhi, Kolkata, Chennai and Mumbai

Section 10(14) Daily Allowance (Partially Exempt Income)

When on tour or for the duration of a job transfer, a daily allowance is received by the employee that helps him meet the daily expenses. In simple words, the daily allowance is granted when the individual is not in the regular place of duty.

Section 10 (1) Agricultural Income

If the income that is received from agricultural activities is the only income source for the entire financial year, the individual’s income is completely excluded from tax.

Section 10(10AA) Encashment of Leave

When at the time of retirement a government employee encashes his leave, the amount he receives is tax-free. In the case of non-government employees, the exempt is available for the least of the following:

Earned leave multiplied by the average salary
Average Salary multiplied by 10
Actual leave encashment that is received

Section 10 (10C) VRS Compensation

Under the voluntary retirement scheme, the compensation that is received at the time of retirement is exempted to a maximum limit of INR 5 lakhs.

Section 10(11) Provident Fund

The payments that are received from an individual’s Provident Fund, are excluded under Section 10. It should be noted here, that if the service has been less than 5 years, then the PF is taxable.

Section 10(5) LTA-Leave Travel Allowance

To a certain limit, LTA for travelling domestically is exempted under Section 10 (5). This exemption, however, depends on the limit of LTA that is specified in the salary of the individual.

Section 10(35) Dividends

Mutual Funds and stocks announce dividends regularly. These dividends, irrespective of the company that is paying taxes, are tax-free in the hands of the individual.

Section 10(13) Superannuation Fund

The regular payment made into a fund by an employee towards his future pension is called the Superannuation fund. This amount is also tax exempted.

Section 10(14) Education Allowance (Partially Exempt Income)

An allowance of up to INR 100 per month, per child, is tax-free under Section 10. Also, there is a hostel allowance for expenses that are made towards a child’s hostel fee, up to INR 300 per month per child. This exemption can be availed for two children only.

Section 10(14) Research or Academic Allowance (Partially Exempt Income)

An allowance that is granted with the aim of encouraging training that is related to academics or research.

Section 10(14) Transport Allowance (Partially Exempt Income)

By transport allowance, it is meant the expense that is incurred due to the travel between the home and the workplace. A transport allowance that is up to INR 800 a month, which makes INR 9,600 annually, is exempted.

Section 10(14) Helper Allowance (Partially Exempt Income)

If the employer authorizes the employee to hire or appoint a helper to perform/help in official duties, the employee will receive a Helper Allowance.

Section 10 (14) (ii)

The other tax exemptions under Section 10 (14) (ii) are as follows:

Compensatory/Climate Allowance

When working in places that have a high altitude, the employees may receive a Climate Allowance, which is

Hilly areas of HP, J&K and the North East- INR 800.
Siachen- INR 7,000/ month

Allowance for Border Duty

Under Section 10, rule 2BB, allowances that range from INR 200 to INR 1300 per month are paid to the CRPF, BSF, etc. for working across the border.

Modified Field Area Allowance

There is a compensatory modified field area allowance which amounts to INR 1,000 per month.

Field Area Allowance

When working in J&K, Manipur, AP, Nagaland, UP, Sikkim or Manipur, the individual gets an allowance of INR 2600 per month.

Allowance for Duty in Counter Insurgency

An allowance of INR 3900 is received every month to the personnel who are serving in counter-insurgency areas.

High Altitude Allowance

The High Altitude Allowance is granted to the armed forces personnel who are serving in high altitude areas:

An altitude between 9,000 feet to 15,000 feet-INR 1060 per month An altitude above 15,000 feet-INR 1600 per month

Island Duty Allowance

An Island Duty Allowance is granted to the armed forces personnel who are serving in Andaman and Nicobar and Lakshadweep Islands, it amounts to INR 3,250 monthly.

What are Allowances?

The fixed and systematic payments that are paid to an employee, over and above his salary for the purpose of meeting the employee’s requirements are called Allowances. For example Transport Allowance, Uniform Allowance, High Altitude Allowance etc.

My father is a farmer, can he save tax under Section 10?

Yes. If the income that is received from agricultural activities is the only income source for the entire financial year, then your father’s income is completely excluded from tax.

I am going to receive my Provident Fund, it is taxable?

The payments that are received from an individual’s Provident Fund, are excluded under Section 10. It should be noted here, that if your service has been less than 5 years, then the PF will be taxable.

How much allowance is received for working in underground mines?

The allowance received is INR 800 per month for working in underground mines.

What is the meaning of Uniform Allowance?

When an office duty prescribes a particular uniform, that is to be worn by the employee when on duty, then an allowance is given for the purchase or the maintenance of that uniform.

I use my own bike to go to my office every day, can I avail tax benefits?

Yes, a transport allowance that is up to INR 800 a month, which makes INR 9,600 a year, is exempted.

How much allowance will an army man receive when posted in the Andaman Islands?

An Island Duty Allowance is granted to the armed forces personnel who are serving in Andaman and Nicobar and Lakshadweep Islands, it amounts to INR 3,250.

How much Transport Allowance is granted to an employee?

For commuting between home and the workplace, an individual receives INR 1600 per month as the Transport Allowance. For an employee who is blind or handicapped, he receives INR 3200 per month.

If at the time of retirement, I encash my leave, will the amount be taxable?

When at the time of retirement a government employee encashes his leave, the amount he receives is tax-free. In the case of non-non-government employees, the exempt is available for the least of the following: Earned leave multiplied by the average salary Average Salary multiplied by 10 INR 3 lakh Actual leave encashment that is received

I am not covered under the Gratuity Act, can I still get an exemption?

For the salaried people who are not covered under the Gratuity Act, the exemption is to the least of: Average of Half Month salary for every year of service. INR 10 lakh

New at Marg
Integrated Banking

RETAIL SOFTWARES

DISTRIBUTION SOFTWARES

MANUFACTURING SOFTWARES

Udhyog Ratan Award

Understanding Section 10(14)(i) of the Income Tax Act: Exemption of Allowances and Perquisites

Section 10(14)(i) of the Income Tax Act, 1961 is an important provision that deals with the exemption of certain allowances and perquisites from the computation of an individual’s taxable income. This section provides for the exemption of allowances and perquisites granted by the employer to the employee to meet the expenses that are necessarily incurred in the performance of their duties. In this blog, we will discuss the provisions of section 10(14)(i) of the Income Tax Act in detail.

Table of Contents

What are Allowances and Perquisites under Section 10(14)(i)?

Allowances and perquisites are monetary or non-monetary benefits provided by an employer to an employee as a part of their salary package. These allowances and perquisites may include house rent allowance (HRA), leave travel concession (LTC), medical allowance, conveyance allowance, and other similar benefits. Under Section 10(14)(i), these allowances and perquisites are exempt from income tax up to a certain limit, subject to certain conditions.

Conditions for Exemption under Section 10(14)(i)

The exemption provided under Section 10(14)(i) is subject to the fulfillment of certain conditions, which are as follows:

Allowance or perquisite should be granted by the employer to the employee.
The allowance or perquisite should be granted to meet the expenses that are necessarily incurred in the performance of the duties of an office or employment of profit.
The allowance or perquisite should not be in the nature of a personal allowance.
The employee should furnish the details of such allowances and perquisites to the employer in the prescribed form and manner.
The employer should maintain a record of such allowances and perquisites and should furnish the details to the Income Tax authorities as and when required.

Limit of Exemption under Section 10(14)(i)

The exemption limit for various allowances and perquisites under Section 10(14)(i) is prescribed by the government from time to time. The current exemption limits for some of the popular allowances and perquisites are as follows:

House Rent Allowance (HRA): The exemption limit for HRA is the least of the following:

a. Actual HRA received from the employer.

b. Rent paid minus 10% of the basic salary.

c. 50% of the basic salary if the employee resides in a metro city (Mumbai, Kolkata, Delhi, or Chennai), or 40% of the basic salary if the employee resides in any other city.

Leave Travel Concession (LTC): The exemption is available for two journeys in a block of four years. The exemption is limited to the actual travel expenses incurred by the employee or the amount received from the employer, whichever is lower.
Medical Allowance: The exemption limit for medical allowance is Rs. 15,000 per annum.
Conveyance Allowance: The exemption limit for conveyance allowance is Rs. 1,600 per month.

Apart from the allowances and perquisites mentioned earlier, there are certain other allowances and perquisites which are also exempt under Section 10(14)(i). These include:

Children Education Allowance: An exemption of up to Rs. 100 per month per child (up to a maximum of two children) is allowed for children’s education expenses.
Hostel Allowance: An exemption of up to Rs. 300 per month per child (up to a maximum of two children) is allowed for hostel expenses.
Uniform Allowance: An exemption of up to Rs. 600 per annum is allowed for expenses incurred on the purchase of uniforms by the employee.
Special Allowance: Any special allowance granted to an employee to meet the expenses incurred in the performance of his duties is exempt up to the extent of the actual expenditure incurred.

Other Important Points

The exemption under Section 10(14)(i) is available only to the extent of the actual expenses incurred by the employee. Any amount received in excess of the actual expenses will be taxable.
The employer is required to deduct tax at source (TDS) on the salary income of the employee, including the exempted allowances and perquisites.
If an employee receives any allowance or perquisite that is not exempt under Section 10(14)(i), it will be fully taxable as per the applicable tax rates.
If an employee receives any allowance or perquisite that is in excess of the exemption limit, the excess amount will be taxable as per the applicable tax rates.

Section 10(14)(i) of the Income Tax Act provides for the exemption of certain allowances and perquisites from the computation of an individual’s taxable income. This section aims to provide relief to employees by exempting certain expenses incurred by them in the performance of their duties. It is important for both the employer and the employee to comply with the provisions of this section to avoid any tax-related issues. Employees should ensure that they furnish the required details of their allowances and perquisites to the employer in the prescribed form and manner to avail of the exemption under Section 10(14)(i).

Frequently Asked Questions (FAQs)

Q: What is Section 10(14)(i) of the Income Tax Act? A: Section 10(14)(i) of the Income Tax Act provides for the exemption of certain allowances and perquisites from the computation of an individual’s taxable income.

Q: What are the allowances and perquisites exempt under Section 10(14)(i)? A: The allowances and perquisites exempt under Section 10(14)(i) include:

Daily allowance or conveyance allowance received by an employee to meet his expenses on tour or transfer.

Special allowance granted to meet expenses incurred in the performance of duties.

Allowance granted to meet the cost of travel on tour or on transfer.

Any allowance granted to an employee to meet the expenses incurred on education of his children.

Any allowance granted to an employee to meet the expenses incurred on the performance of his official duties.

Q: Are there any limits on the amount of allowances and perquisites exempt under Section 10(14)(i)? A: Yes, there are limits on the amount of allowances and perquisites exempt under Section 10(14)(i). The exempted amount varies depending on the nature of the allowance or perquisite.

Q: What are the other allowances and perquisites exempt under Section 10(14)(i)? A: The other allowances and perquisites exempt under Section 10(14)(i) include children education allowance, hostel allowance, uniform allowance, and special allowance granted to meet the expenses incurred in the performance of duties.

Q: Is the exemption under Section 10(14)(i) available only to salaried employees? A: No, the exemption under Section 10(14)(i) is available to all employees, including salaried employees and self-employed individuals.

Q: Can an employee claim exemption for allowances and perquisites not mentioned under Section 10(14)(i)? A: No, an employee cannot claim exemption for allowances and perquisites not mentioned under Section 10(14)(i). Such allowances and perquisites will be fully taxable as per the applicable tax rates.

Q: Do employers need to deduct TDS on the exempted allowances and perquisites? A: Yes, employers need to deduct TDS on the salary income of the employee, including the exempted allowances and perquisites.

Q: What should employees do to avail of the exemption under Section 10(14)(i)? A: Employees should furnish the required details of their allowances and perquisites to the employer in the prescribed form and manner to avail of the exemption under Section 10(14)

𝗜𝗺𝗽𝗼𝗿𝘁𝗮𝗻𝘁 𝗨𝗽𝗱𝗮𝘁𝗲 𝗼𝗻 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅: 𝗔𝗺𝗲𝗻𝗱𝗺𝗲𝗻𝘁 𝘁𝗼 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟰𝟯𝗕 𝗳𝗼𝗿 𝗠𝗦𝗠𝗘 𝗣𝗮𝘆𝗺𝗲𝗻𝘁𝘀

Demystifying Section 142 of the Income Tax Act: An Overview of Powers and Procedures

Section 68 of the Income Tax Act: Exploring Unexplained Cash Credits and their Tax Implications

Section 142(1) of the Income Tax Act: Empowering Tax Authorities for Assessment and Reassessment

Understanding Unabsorbed Depreciation in Income Tax: A Comprehensive Guide

Unabsorbed Depreciation: Carrying Forward Tax Benefits

Unabsorbed Depreciation in Income Tax: Understanding its Impact and Implications

Demystifying Income Tax Returns for Proprietors: A Comprehensive Guide

Understanding the Different Heads of Income Tax: A Comprehensive Guide

Tuition fee and child education allowance exemption under section 10 and 80C

It is better to plan your income tax liability in advance. If you are in employment you can plan your income for maximum tax benefits.

One of the main expenditure that you can claim as a deduction is tuition fee you pay for your children.

You can take double benefit for your child's education.

First under section 10, you can structure your salary by including child education allowance. Again under section 80C you can claim tuition fee paid for your children.

Deduction under section 10 for Child education allowance

Plan your salary structure to lower your tax liability.

Normally you have your salary structure in the popular brackets such as Basic Salary, DA, Conveyance, HRA etc.

One of the less popular but allowed deduction is education and hostel allowance for your child.

Education allowance up to 2 children is allowed. The limit under section 10 for child education allowance is Rs. 100 per child per month.

So if you have 2 children you can claim deduction of Rs. 2400 per year.

Further if you child is staying in hostel, you can claim Hostel allowance up to Rs. 300 per month per child. Again you can claim deduction of Rs. 7,200 per year.

Note that child education allowance is allowed if you have actually incurred these expenditure.

Deduction under section 80C for tuition fee paid

You can claim deduction under section 80C for tuition fee incurred on educating your child.

The deduction is allowed up to 2 children.

What is tuition fee?

Tuition fee is the fee incurred on education your child in a school. Do not confuse it with tuition done at a tutorial.

I have seen many people who claim deduction for full amount paid to school. This is not the correct way.

Fee you pay to school is not full amount for tuition itself. If you look at the fees paid receipt, it will have different parts such as tuition fee, computer fee, van fee etc.

You allowed deduction only for tuition fee part.

How much deduction is allowed under 80C for tuition fee?

Deduction is allowed up to Rs. 1,50,000 for a year for current assessment year. Actually tuition fee with other deductions should not cross maximum limit allowed under section 80C.

Deduction is allowed up to 2 children.

If you have 3 child, you can claim deduction only for 2 children.

Deduction is allowed if you have actually paid the fees. Further you can not claim deduction for any other amount paid to school other than tuition fee.

Other expenses such as van fee, library fee, donations etc. are not allowed.

You can claim expenses incurred on nursery or pre nursery classes too. Private tuition fees are not allowed as deduction.

80C deduction for tuition fee is allowed if incurred on self study?

No, tuition fee incurred on your own studies is not allowed under section 80C. Neither you can claim deduction for expense incurred on education your spouse or any other member.

Deduction is allowed only for tuition expenses incurred in educating your children.

Deduction is allowed on payment basis, if you have not paid the tuition fee then expense is not allowed as deduction.

80C deduction for tuition fee is allowed for expenses incurred in a school or university located outside India?

No, to claim deduction under section 80C school or university or education institute has to be situated in India.

If you have incurred any expense for educating your child in foreign country then deduction is not allowed.

Deduction under 80C for tuition fee paid for an adopted child or by an unmarried person

Even if you are not married or have adopted a child, you can claim deduction under 80C.

Section 80C does not mandate that person has to be biological father of child or person should be married.

If you have child from live in relationship, you can still claim deduction.

It is advised that you plan your taxes in advance and avoid last minute rush. If you working under employment, update your payroll records with HR department to include expenses incurred on education of your child.

By default Payroll structure given by HR does not include child education allowance, you can edit the structure and include the child education allowance and hostel allowance to avail full benefit given by government to save on your taxes.

Submit fees paid receipt to your HR department on time to avail deduction under section 80C.

I am a GST consultant and write latest news on KYG and here to learn and share GST Laws. I get my clients from KnowyourGST. Need clients? Post answers and help public just like I do :) Check Profile

No comments yet, be first to comment.

You need to be logged in to comment.

Verify GST Number
Search GST Number with name or pan
Search Multiple GST numbers
Search Multiple PAN numbers
Top Members

Extension of time limits of certain Compliances to provide relief to tax payers in view of pandemic
Dividend Income U/s 8 of Income Tax Act 1961 new provision
Whether 'tips' received fall within the meaning of "Salaries" to attract TDS under section 192
Mandatory requirement of furnishing PAN in all TDS statements, bills, vouchers and correspondence between deductor and deductee [Section 206AA] | AY 2019-20 onwards
Furnishing of statements in respect of payment of interest to residents without deduction of tax [Section 206A] | AY 2019-20 onwards
Person responsible for paying taxes deducted at source [Section 204] | AY 2019-20 onwards
Common number for TDS and TCS [Section 203A] | AY 2019-20 onwards
What if TDS is not deducted or paid [Section 201] | AY 2019-20 onwards
Duties of Person deducting income tax [Section 200] | AY 2019-20 onwards
Credit for tax deducted at source [Section 199] | AY 2019-20 onwards

Never File Wrong GSTR-1

Not a member? Register

Popular Courses
Master Power BI
More classes
More Courses

Section 10(14) - Children Education Allowance

Deepak Goel

Manmohan ACA, CS

Vivek Gupta

Similar Resolved Queries

Defective Ret..
REGARDING FORM 71 OF INCOME TAX
ST capital gains and income tax
Defective notice u/s 139(9) Error Code : RULE_37BA_194M_001 - 139 9
Liability To Pay GST on Property registered in the name of Buyer but Completion Cert not issued.
Cost of Acquisition for LTCG calculation on sale of property
What taxes to pay if I get 1 crore gain through the stock market in current Financial Year
194R treatment in accounts
Taxation on partners of LLP
Lost 37lacs in cyber fraud. Filled FIR
Delete duplicate tds challan
ITR of AOP and BOI
GST Registration and Tax liability Date
GST Invoice for B2C sales
Delay in submission of Form 103
Section 194 O
Time barring date for assessment of individual
Capital Gain on sale of land.......
Refund of TDS/TCS
Comission income full disclosure in case of Aggregator(like: redbus etc) of bus travelling Business

Trending Online Classes

5 days Certification Course on GST Practical Return Filing Process

Mastering Power BI for Financial Analysis - Data-Driven Finance

GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)

Whatsapp Groups

India's largest network for finance professionals

Alternatively, you can log in using:

Advanced Searches
Legislation
Congressional Record
Search Tools
Browse the Help Center

Examples: "Trade Relations", "Export Controls"

Examples: hr5, h.r.5, sjres8, sa2, pl116-21, 86Stat1326

Examples: trade sanctions reform, small modular reactor

Examples: hr5, h.r.5, sjres8, s2, 90stat2495

Examples: baseball, "standing rules"

Examples: 5, 20, 37

Examples: hr5021, H.Res.866, sconres15, S.51, 117pl2, 117-2

Examples: "enrolled bill signed", "leak detection dog"

Examples: "diplomatic service", retired

Examples: PN4, pn12, pn1633-2, 118PN345

Examples: Morris, Beck

Examples: general, "deputy under secretary"

Examples: judiciary, "Coast Guard"

Examples: marine mammals, "5 U.S.C. 801", "Presidential Address"

Example: peace corps

Examples: EC6228, r12313, PM45, PT83, ML160

Example: 5 U.S.C. 801

Examples: "trade relations", "Export Control Act"

Examples: EC2, PM32, POM43

Examples: UNESCO, "sea turtles"

Examples: 115-3, 114-13(A)

Example: 106-1

S. Rept. 118-207 - DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION, AND RELATED AGENCIES APPROPRIATION BILL, 2025 118th Congress (2023-2024)

Committee report.

Report Type:	Senate Report
Accompanies:
Committees:

Report text available as:

PDF (1MB) (PDF provides a complete and accurate display of this text.) Tip ?

COMMENTS

Children Education Allowance: Rules, Limits, and Exemptions
Section 10(14) of the Income Tax Act covers the specifics of the expenses paid under the Children's Education Allowance. The qualifying exemptions and requirements for claiming education expense tax advantages are outlined in this section.
Tax Benefits on Children Education Allowance, Tuition Fees ...
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 on Tuition Fees under Section 80C
Everything About Section 10(14)(ii) of Income Tax Act, 1961
The allowances covered under section 10(14)(ii) of Income Tax Act, ... This allowance is designed to assist employees with the costs of their children's education. Employees can claim an exemption of up to ₹100 per month per child up to 2 children. This exemption is typically applicable for children up to the age of 20.
Children Education Allowance
Hostel charges allowance: Currently, this allowance is Rs. 300 per child, only for 2 children of a family. Section 10(14) of the IT Act of 1961 covers the details of costs incurred. Section 80C and tuition fee exemptions; Section 80C makes it amply clear which overheads will come under children education allowance section and which will not.
Tax Benefits on Children Education Allowance, Tuition fees ...
As per Section 10(14) of the Income Tax Act 1961, special allowances are given to salaried individuals to cover their children's education and hostel expenses. Children's Educational Allowance: An allowance of INR 100 per month is allowed per child for up to two children studying in an educational institution.
Income Tax Exemption on prescribed allowances/ benefits
Provisions of section 10 (14) (ii) provide exemption towards the prescribed allowance granted to an employee to meet his personal expenses at either of the below place-. at the place where he ordinarily resides. The amount of exemption is lower of the following-. Limit, as prescribed under rule 2BB (2). Rule 2BB (2) lists down the prescribed ...
Children Education Allowance Deduction & Exemptions
The limit allowance is Rs 100 per month per child. A taxpayer claim allowance for up to 2 children only. The taxpayer must incur expenses to claim the benefit of the allowance. Other Child Education Deductions Children Hostel Allowance. Income Tax - Section 10(14) of Income Tax Act 1961; Eligibility- Resident Individual
Section 10(14) of the Income Tax Act: Understanding Allowances and
Section 10(14) of the Income Tax Act, 1961 is an important provision that deals with various allowances and benefits that are exempt from income tax. In this. ... Children education allowance: This allowance is given to employees to cover the cost of education of their children. The exemption limit for this allowance is up to Rs. 100 per month ...
Section 10 Of Income Tax Act: Exemptions, Allowances and How ...
Under Section 10(14), the Internet allowance provided by your employer is exempted from taxation. Food allowance exemption under Section 10. Section 10(14) also includes a tax exemption of Rs.26,400 in a year for food allowance provided by your employer assuming two meals a day and 22 working days in a month.
Everything about Child Education Allowance
Approval and Disbursement- On approval, get the Child Education Allowance, received through the salary or as a separate payment. Tax Exemption Of Child Education Allowance. As per the recent update in January 2022, Child Education Allowance (CEA) in India is tax-exempt under Section 10(14) of the Income Tax Act, subject to a certain limit.
Children Education Allowance Exemption
Children Education Allowance is exempt under Section 10 (14) of Income Tax Act. To claim the tax benefit, Individuals need to fill Form 12BB and submit to their employer in case the income is inherited from a form of salary. For others, a rebate has to be claimed by filling the form under the VI-A schedule under 80C of Indian income tax.
Tax Benefits available on Children Education Allowance, Hostel
Updated: As amended in finance act 2020 As per section 10(14) of Income-tax, children education allowance and Hostel Expenditure Allowance are eligible for deduction available to individuals employed in India. Children Education Allowance: Up to Rs. 100 per month per child up to a maximum of 2 children is exempt Hostel Expenditure Allowance :Up to…
Income Tax Exemptions: Section 10(14)(i) of the Income Tax Act
Apart from the allowances and perquisites mentioned earlier, there are certain other allowances and perquisites which are also exempt under Section 10(14)(i). These include: Children Education Allowance: An exemption of up to Rs. 100 per month per child (up to a maximum of two children) is allowed for children's education expenses.
Allowances [u/s 10(14)(i)] & Personal Allowances [u/s 10(14)(iii)]
Following are the prescribed allowances for the purpose of section 10(14)(i): (i) Helper Allowance: It is exempted upto actual amount spent on engaging a helper required to perform the official duties. Excess, if any, will be taxable. ... If any amount is given by employer to employee as education allowance for the education of own children in ...
Section 10(14)(i) and Rule 2bb of Income Tax Act 1961 ...
Children Education Allowance: The exemption for children education allowance is limited to Rs. 100 per month per child up to a maximum of two children. The exemption can be claimed only if the employee provides proof of payment of education expenses to the employer. ... The exemptions provided under Section 10(14)(i) include allowances for ...
Tax Benefits on Children's Education Allowance, Tuition Fees ...
Exemptions for Children's Education and Hostel Expenditure. Salaried taxpayers in India are eligible for the following exemptions: Children's Education Allowance: ₹100 per month per child, with a maximum allowance for two children. Hostel Expenditure Allowance: ₹300 per month per child, also capped at a maximum of 2 children.
Income tax exemption on children education allowance
Children Education Allowance (CEA) under section 10 (14) read with Rule 2Bb(2)(5) of the Income Tax Act is Rs.I00 per month per child. This limit as fixed more than 2 decades back when the maximum amount of Children Education AIlowance for Central Government Employees was fixed at Rs. 100/- per month per child under the IVth Central Pay Commission.
Section 10 of Income Tax Act: Exploring Exemptions and Allowances
Section 10(14) According to Section 10(14), certain allowances or benefits provided to employees are exempt from tax, subject to specific limits. ... Allowance/ Benefit Exemption Limit; Children Education Allowance: Up to Rs. 100 per month per child, max. 2 children: Hostel Expenditure Allowance: Up to Rs. 300 per month per child, max. 2 ...
Special Allowance Under Section 10 for Salaried Employees
Section 10(14) Education Allowance (Partially Exempt Income) An allowance of up to INR 100 per month, per child, is tax-free under Section 10. Also, there is a hostel allowance for expenses that are made towards a child's hostel fee, up to INR 300 per month per child. This exemption can be availed for two children only.
Understanding Section 10(14)(i) of the Income Tax Act ...
Apart from the allowances and perquisites mentioned earlier, there are certain other allowances and perquisites which are also exempt under Section 10(14)(i). These include: Children Education Allowance: An exemption of up to Rs. 100 per month per child (up to a maximum of two children) is allowed for children's education expenses.
Tuition fee and child education allowance exemption under section 10
Education allowance up to 2 children is allowed. The limit under section 10 for child education allowance is Rs. 100 per child per month. So if you have 2 children you can claim deduction of Rs. 2400 per year. Further if you child is staying in hostel, you can claim Hostel allowance up to Rs. 300 per month per child. Again you can claim ...
Section 10(14)
14 June 2009 As per section 10 (14) reg. Children Education Allowance - you can claim exeption max. 100/- per child subject to max. 2 child. In your case Max. exemption 2400/- you can claim and 600/- will added in your income. 14 June 2009 exemption u/s 10 (14) (ii) read with Rule 2BB (ii) is Rs. 100 per month per child to the maximum of 2 ...
S. Rept. 118-207
s. rept. 118-207 - departments of labor, health and human services, and education, and related agencies appropriation bill, 2025 118th congress (2023-2024)

Everything About Section 10(14)(ii) of Income Tax Act, 1961

Table of Contents

What are the conditions to avail the Exemption u/s 10(14)(i)?

Type of Allowances under Section 10(14)(ii)

1. Uncongenial Climate Allowance

2. Snow Bound Area Allowance

3. Avalanche Allowance

4. Special Compensatory (Uncongenial Climate) Allowance

5. Special Compensatory (Hilly Areas) Allowance or Climate Allowance

6. Special Compensatory (Difficult Area) Allowance or Disturbed Area Allowance

7. Special Compensatory (Border Area) Allowance

8. Special Compensatory (Remote Locality) Allowance or Scheduled/Tribal Area Allowance

9. Underground Allowance

10. High Altitude Allowance

11. Island Duty Allowance

12. Children Education Allowance

13. Hostel Allowance

14 .Transport Allowance

15. Compensatory Field Area Allowance

16. Modified Field Area Allowance

17. Counter-Insurgency Allowance

Final Words

Frequently Asked Questions (FAQ)

7 thoughts on “Everything About Section 10(14)(ii) of Income Tax Act, 1961”

Leave a Comment Cancel reply

Children Education Allowance

CEA Limits and Taxation

Children Education Allowance Rules

Exemption for education and hostel charges

Eligibility criteria to apply for exemptions under Section 80C

Procedure to Claim Tax Exemptions for CEA

The 7CPC and Allowances

Before 7CPC recommendations

ITR Filing Deadline Missed? Last chance to claim your tax refund.

ITR Filing Deadline Missed?

Deduction for Children Education & Tuition Fees - Tax Benefits Under Section 80C

Allowances for Children’s Education and Hostel Expenditure

Tax Deduction on Tuition Fees under Section 80C

Children's Educational Allowance for Employees of the Central Government

Q - Is the reimbursement on Children's Educational Allowance for a third child permissible if it has not been claimed for 1st and 2nd child? Because as per OM dated 2/9/2008, CEA is admissible for two school-going children. Does it mean any two school-going children?

Q - Can CEA be claimed for a child for the same class twice?

Q - Is there any age limit for reimbursement of CEA with respect to children studying nursery classes?

Q - Is CEA admissible to Government Servants who cease to be in service due to retirement, dismissal, discharge or removal from service during the course of the academic year?

Q - Will the Children of a Government Service Employee who dies during service be still eligible for CEA reimbursement under the new CEA scheme?

Mobile Validation

Income Tax Exemption on prescribed allowances/ benefits | Section 10(14)

Understanding provisions of section 10(14)(i) read with rule 2BB (1)-

Understanding provisions of section 10(14)(ii) read with rule 2BB (2)-

Name: CA Sandeep Kanoi

14 Comments

Leave a Comment

Subscribe to Our Daily Newsletter

Children Hostel Allowance

Tuition Fee

Interest on Education Allowance

Related Articles

Cess on Income Tax

Angel Tax 2024 Guide: Meaning, Applicability and Exemption

All You Need to Know About Form 16A

GSTR 2A: All You Need to Know

GSTR 2B: All You Need to Know

GST Types: What are the types of GST in India?

Anjana Dhand

Practical Insights For Wealth Creation

Show comments

Get the Scripbox App

Section 10 Of Income Tax Act: Exemptions, Allowances & How To Claim It?

What is Section 10 of Income Tax Act?

What are Exemptions Under Section 10?

Section 10(13A) of the Income Tax Act

Section 10(5) of the Income Tax Act

Section 10(26) of the Income Tax Act

Section 10(14)(i) of the Income Tax Act

Section 10(11) of the Income Tax Act

Section 10(34) of the Income Tax Act

Section 10(26AAA) of the Income Tax Act

Section 10(38) of the Income Tax Act

Section 10(23C) of the Income Tax Act

Section 10(37) of the Income Tax Act

Section 10(10A) of the Income Tax Act