Tax Exemption on Children Educational Allowance

[Balaknath Bhattacharyya]

As per Rule 2BB of Income Tax  Rules 1962, Rs 100/- per month per child is eligible for exemption out of the Children Education Allowance received by an assessee employee. The assessee employee has drawn education allowance for his two children for two years (2010-11 & 2011-12) in the year 2011-12. My query is : whether the assessee employee is entitled to exemption of Rs 4800 ( Rs 100x2x 24)   for 24 months in the F.Year 2011-12

[r.rajkumar kumar]

NO RESPECTIVE ONE CAN CLAIM ONLY ONE CLAIM IN RESPECTIVE ASSESSMENT YEAR IN THIS CAE YOU CAN CALIIM 2400 FOR 2012-13.IF YOU WANT TO CLAIM FOR 2010-11 YOU CAN REOPEN THE RETURN FILED

IN THE YEAR OF 2011-12 .TKS 

AI Summary

Children education allowance exemption limited to one claim per assessment year; earlier-year relief requires reopening the return. Rule 2BB allows an exemption for Children Education Allowance based on a capped per-child monthly amount. Claims are confined to the relevant assessment year, so an employee cannot aggregate exemptions for earlier years into a later assessment year; relief for an earlier year requires reopening the return for that assessment year.