CHILDREN EDUCATION

CHILDREN EDUCATION—TUITION FEES—DEDUCTION U/S 80C—CHILDREN EDUCTION ALLOWANCE—SECTION 10(14)

SECTION 80C

Can exemption of Children Education Allowance u/s 10(14) and as well as deduction of children education u/s 80C claimed simultaneously?

Reply

Deduction under section 10(14) allows Rs. 100 per month per child for maximum of two children and upto maximum of Rs. 300/- per month upto maximum two children if the children are staying in a hostel. Section 80C allows tuition fees paid as deduction upto Rs. One lakh per annum and can be claimed by each parent up to two children each (maximum deduction clubbed with all 80C deductions.)

Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88.  The new section 80C has become effective w.e.f. 1st April, 2006. Both the above mention deductions can be claimed at the same time.