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

AI Summary

Tax Exemption Clarification: Only Rs 2400 Claimable for Children Education Allowance under Rule 2BB for FY 2011-12. An individual inquired about the tax exemption eligibility for Children Education Allowance under Rule 2BB of the Income Tax Rules, 1962. The person sought clarification on whether they could claim an exemption of Rs 4800 for two children over two years (2010-11 and 2011-12) in the fiscal year 2011-12. The response clarified that only Rs 2400 could be claimed for the 2012-13 assessment year. To claim for 2010-11, the individual would need to reopen the tax return filed in 2011-12.