Hyderabad: Everyone invests considerably into children's education in the hope of helping to carve out a bright future for them. Governments reward tax payers with exemptions offered on expenditure incurred on children's education. It is time to check how to claim this exemption fully as the financial year is soon coming to end.
The last date for making investments required for income tax exemption in the current financial year is March 31, 2023. You might have submitted all documents related to tax exemptions to the office. Once check whether they are all correct and whether full tax exemptions are available.
Apart from investments, some expenses can also be claimed for tax exemption. Children's tuition fees are one of them. Fees paid for studies in recognized schools, colleges and other educational institutions can be shown for this purpose. This applies to a maximum of two children. This exemption can be availed up to Rs 1,50,000 as per section 80C of the Income Tax Act.
This exemption facility is available to every taxpayer. However, it does not apply to fees paid to children studying abroad. Any special allowance given by the employer for the welfare of children is also exempted. But it is subject to limits. An exemption of over Rs 1,200 per year can be claimed under education allowance and Rs 3,600 under hostel allowance as per Section 10 of the Income Tax Act.