Exempt Education Allowance
JANUARY 28, 2017
By Vijay Kumar, Ahmedabad
I am a Central Government employee. Educational allowance of Rs.18,000/- (per year) is one of the allowances we get from the Government and forms part of the salary. It is in a sense, a part reimbursement of huge expenses incurred by the parents for their children. This allowance is subject to tax. Today, as we all know, parents actually pay more than Rs.18,000/- towards educational fees and other such expenses. Since this being a small amount and being reimbursed towards actual educational fees and related expenses, this entire allowance of Rs.18,000/- should be exempted from the salary for taxation purpose like LTC.
Further, income-tax slab is to be revised upwards so as to enable the people to have some surplus income at their disposal for the future, particularly in the case of salaried class who is hard hit by high rate of income-tax.
(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site) |
|