Children Education allowance is exemtpted upto rs. 100/- p.m per child upto 2 children and hostel allowance is exempted upto rs. 300/- p.m per child upto 2 children and also 80C alows tuition fee paid as a deduction.
So we can exempt these allowances and also consider the actual fees paid u/s 80C for calculating the TDS amount on salary.
Am I right ????????????
Children education and hostel allowance exemptions affect TDS on salary; tuition fees deductible under section 80C for TDS. Whether Children Education Allowance and Hostel Allowance may be treated as exempt and whether tuition fees claimed under Section 80C can be applied when computing TDS on salary; forum replies indicate no restriction on treating those exemptions and the Section 80C tuition fee deduction for TDS computation. (AI Summary)