Children Educational Allowance, Section 80C tuition fee deduction—See how you can claim tax benefit of up to ₹4.38 lakh?

India’s Income Tax Act provides two separate tax benefits for salaried individuals to reduce taxable income for children’s education under the old tax regime. The Children Education Allowance (CEA) exempts up to ₹3,000 per month per child for tuition fees and ₹9,000 per month per child for hostel expenses, totaling ₹72,000 and ₹2,16,000 respectively for two children annually. Additionally, Section 80C allows a ₹1.5 lakh deduction for tuition fees paid to educational institutions in India. Both benefits are available only under the old tax regime and cannot be claimed under the new regime. The CEA applies to fees paid to schools, colleges, or universities within India, with no age limit for children. However, the deduction is not applicable for part-time courses or payments made by relatives, including self, spouse, or siblings. Taxpayers must submit fee receipts as proof and declare payments in Form 12BB or while filing income tax returns (ITR). Non-salaried individuals, such as freelancers or business owners, can only claim tuition fee deductions under Section 80C, not the CEA. Payments must be made during the financial year to qualify for the deduction. The combined tax relief from both CEA and Section 80C can reach up to ₹4.38 lakh annually for eligible taxpayers. This includes ₹72,000 for tuition fees, ₹2,16,000 for hostel expenses, and ₹1.5 lakh under Section 80C, provided all conditions are met.