Hostel allowance given by employers for three children @400/- p.m.per child. butonly one child is staying in the hostel. What amount is taxable
> Income tax hostel allowance --Under section 10(14)(ii) read with Rule 2BB(2), any allowance granted to meet the hostel expenditure of the employees children qualifies for an exemption of Rs. 300 per month per child subject to a maximum of two children. --If only one child is in staying in the hostel than you can avail the only for the one child upto rs.300/- p.m. and education allowance upto rs.100/- p.m. You cant avail the exemption of rs 400/- p.m. as hostel allowance.
Hie The limits are maximum benefits that can be availed. But if there is only 1 child,we won't show 3 children for exemption. Hence only Rs. 400 p.m. is allowed. Thanks & Rtegards Sonu