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Children Education and Hostel Allowance Deductions Calculator

What is Children Education and Hostel Allowance Calculator?

Children's Education and hostel allowance calculator is a tool that helps you determine the amount of tax-free allowance which will help in planning the salary structure and reducing tax liability.

How to Calculate Children's Education and Hostel Allowance Deductions?

To calculate eligible allowance of Children's Education and Hostel expenditure you need the following:

  • Actual Expenditure per child in respect of Education of children
  • Actual Expenditure per child in respect of Hostel accommodation of children

This can be understood with the below-mentioned example of Mr A.

Children Education & Hostel allowance

Example: Mr A received Rs. 15,000 children education allowance & Rs. 10,000 hostel accommodation allowance. He has two kids for which he pays Rs.1000 per child towards hostel fees and Rs. 500 per child as education fees. Please calculate taxable allowance in the hands of Mr.A.

Persons Covered Children Education Allowance Hostel Allowance
Amount received 15000 10000
Less: Exemption* 2400 7200
Taxable Allowance 12600 2800

*(As amount actually paid > maximum allowed, so the maximum allowed as per act will be exempt)

Benefits of Using Children Education and Hostel Allowance Calculator

Planning of CTC plays an important role in optimizing tax liability, with the help of this calculator you came to know about what amount of allowance will be eligible for tax exemption which can help you in tax savings.

Eligibility for Using Children's Education and Hostel Allowance Calculator

Children's Education and Hostel Allowance can be claimed only by individuals who have their children in a hostel or are studying. It is allowed up to a specified amount for a maximum of two children

FAQ

1

Which paperwork do I need to complete when claiming Children Education and Hostel Allowance deductions?

Payment receipts will be required for claiming Children Education and Hostel Allowance deduction; however, in case of consolidated combined payment, an annexure or certificate from the educational institution will be provided having bifurcation of amount into various heads for which the payment has been done.

2

What is the amount of allowance allowed as an exemption in Children's Education Allowance?

Under children's education allowance, a maximum of Rs. 100/- per month per child up to two children will be allowed. This amounts to Rs. 2,400/- for the whole year for two children.

3

What is the amount of allowance allowed as an exemption in Children Hostel Allowance?

Under children's Hostel Allowance, a maximum of Rs. 300/- per month per child up to two children will be allowed. This amounts to Rs. 7,200/- for the whole year for two children.

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