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Issue ID: 2862
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TDS on Salary

Date 04 Mar 2011
Replies 2 Replies
Views 1143 Views
Asked by
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)

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 ????????????

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Replied on Mar 4, 2011
1.

There seems no such restriction.

Like 0
Replied on Mar 4, 2011
2.

Yes, there is no such restriction

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