New Delhi, April 17 -- The government has significantly increased the tax-free limits on allowances for children's education and hostel expenses under the revised income tax rules. While the latest updates mark a sharp jump as compared to earlier limits, with the maximum exemption likely to go up to Rs.2.88 lakh a year for families with two children, reportedly not everyone can avail the benefits.

The child education allowance has been raised from Rs.100 to Rs.3,000 per month per child, while the hostel allowance has gone up from Rs.300 to Rs.9,000 per month per child. These limits apply per child, for up to two children.

Only salaried individuals can claim the allowances - provided the amount is part of their salary package. The allowa...