Employer-provided education allowance for children is partially tax-exempt under the Income Tax Act. The exemption covers up to 2 children.
Exemption Details
- ₹100 per month per child (₹1,200 per year)
- Maximum for 2 children: ₹2,400 per year
- Hostel allowance: ₹300 per month per child (₹3,600/year)
Key Points
- Available for up to 2 children only
- Amount above the exempt limit is taxable
- Claim via employer by submitting child's school details
This guide reflects FY 2025-26 (AY 2026-27) and is for general information. Tax rules and limits change, and how they apply depends on your circumstances. It is not professional tax advice; consult a qualified Chartered Accountant before acting.
