New Delhi, May 11 -- The Income-tax Act (ITA) provides tax exemption for Children Education Allowance provided to salaried individuals by the employer to covers tuition fees for up to two children in a given financial year and within specified limit, under the old tax regime.

Further, there is also provision for deduction under Section 80C of the ITA up to Rs.1.5 lakh for two children within a financial year, under the old tax regime.

Notably, CEA and tuition fees deduction are two separate tax benefits that can be claimed by salaried taxpayers. The total relief available from both is up to Rs.4,38,000. See below for calculations:

As per Section 10 of the ITA, CEA is allowed for a maximum of two children, with up to Rs.3,000 per month,...