Children Education Allowance

The Children Education Allowance is a government welfare program aimed at assisting employees in meeting the educational needs of their children. It is designed to ease the financial burden on parents and guardians while ensuring that children receive a sound education.

Read more
Investing in your child's future:A wise decision & a loving choice
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold
  • Insurer pays premium in case of loss of life of parent

  • Create wealth for child’s aspirations

  • Tax Free maturity amount+

  • 12+ plans available

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

What is Children Education Allowance?

Children Education Allowance (CEA) is a financial benefit provided by the government to its employees to assist them in meeting the educational expenses of their children. It aims to remove the burden of education-related costs and encourage the pursuit of quality education for the children of government employees.

What are the Types of Fees Reimbursable Under CEA?

The Children Education Allowance (CEA) is a valuable benefit provided to government employees to assist them in meeting the educational expenses of their children. Here are the various fees that are reimbursable:

  • Tuition Fee: The regular tuition fees charged by the school or educational institution where the child is enrolled are eligible for reimbursement. This fee covers the cost of classroom instruction and academic learning.

  • Admission Fee: The fee paid at the time of admission to the school is reimbursable. This one-time fee is often charged to secure a seat for the child in the institution.

  • Laboratory Fee: Fees charged for laboratory facilities and practical work related to subjects like science, computer science, or any other hands-on learning activities are eligible for reimbursement.

  • Special Fee: Special fees charged for specific subjects or specialized courses, such as electronics, music, agriculture, etc., are reimbursable under the CEA scheme.

  • Fee for Use of Aids or Appliances: If the child is required to use any aids or appliances as part of the educational curriculum, the fee paid for their usage is eligible for reimbursement.

  • Library Fee: Charges levied for access to the school library and its resources are considered reimbursable under the CEA.

  • Games/Sports Fee: Any fee collected for participating in sports or extracurricular activities at school is eligible for reimbursement.

  • Fee for Extra-Curricular Activities: Fees charged for participation in various extra-curricular activities, such as arts, crafts, debates, etc., are reimbursable.

Besides the above-mentioned fees, the CEA also covers other expenses related to the child's education:

  • Textbooks and Notebooks: Reimbursement is allowed for the purchase of one set of textbooks and notebooks required for the child's academic year.

  • School Uniforms: The cost of two sets of uniforms prescribed by the school, irrespective of colors, winter/summer/PT uniforms, is eligible for reimbursement.

  • Shoes: The expense of one pair of shoes prescribed by the school is also reimbursable.

It's essential to note that the aforementioned fees and expenses are eligible for reimbursement only if they are charged directly by the school from the student. Additionally, government employees need to ensure that they maintain proper documentation, including fee receipts and relevant certificates, to claim the reimbursements successfully.

What is the Eligibility Criteria of The Children?

To be eligible for claiming CEA, certain requirements concerning the age and educational status of the children need to be met. The eligibility criteria are as follows:

  • No Minimum Age for Nursery Classes: For children admitted to nursery classes, no minimum age is prescribed for reimbursement of CEA. 

  • Minimum Age of 5 Years for Disabled Children: Earlier, physically challenged or specially abled children undergoing non-formal or vocational education were required to be a minimum of 5 years old to be eligible for CEA. However, as of 21st February 2012, this minimum age requirement for disabled children has been removed. Now, there is no minimum age limit for any child, regardless of their disability status, to claim reimbursement under CEA.

  • Maximum Age of 20 Years for Normal Children: The maximum age limit for claiming CEA for a normal child is up to 20 years. This means that government employees can avail of CEA for their child's education up to the age of 20 years.

  • Maximum Age of 22 Years for Physically Challenged Children: In the case of physically challenged or specially abled children, the maximum age limit for claiming CEA is extended up to 22 years. 

What is the Eligibility Criteria of the School or Institution for CEA?

For a school or educational institution to be eligible under the Children Education Allowance (CEA) scheme, it must fulfill certain recognition criteria. The institution should be officially recognized by one of the following authorities:

  • State or Central Government: The school or institution should have recognition from either the Central Government or the State Government.

  • Union Territory (UT) Administration: If the school is situated in a Union Territory, it should have recognition from the UT administration.

  • University: Recognition from a university is also considered valid for eligibility under the CEA scheme.

  • Known Educational Authority: If the region in which the institution is situated is under the jurisdiction of a recognized educational body, the school is required to obtain authorization from that entity.

This recognition requirement applies not only to regular classes but also extends to children studying in two classes prior to Class-I, such as nursery, LKG (Lower Kindergarten), UKG (Upper Kindergarten), etc.

Invest More Get More
Invest ₹10K/Month YOU GET ₹1 Crores* For Your Child View Plans
Invest ₹8K/Month YOU GET ₹80 Lakhs* For Your Child View Plans
Invest ₹5K/Month YOU GET ₹50 Lakhs* For Your Child View Plans
Standard T&C Apply *

What are the Children Education Allowance for Government Employees?

The Children Education Allowance (CEA) is a benefit provided to all Central Government employees, including citizens of Nepal and Bhutan, who are employed by the Government of India and have children studying abroad. However, to claim the allowance for children studying overseas, a certificate from the Indian Mission abroad is required. This certificate confirms that the school attended by the child is recognized by the educational authority having jurisdiction over the area where the institution is located.

People also read: Child Education Plan

Children Education Allowance Taxation & Limits

Children Education Allowance (CEA) comes with tax exemptions, primarily falling under Section 80C Income Tax Act. The 7th Pay Commission has significantly boosted tax benefits and allowances. However, not all states have implemented the 7CPC recommendations, resulting in variations in CEA limits across India.

For numerous individuals who receive a fixed salary, the educational expenses of their kids, encompassing tuition charges, accommodation costs, and funds for books, form a separate segment of their compensation packages. It's crucial for workers to have knowledge about the precise regulations and restrictions that are relevant in their state when they make use of these advantages.

What are the Rules Under Children Education Allowance?

Children Education Allowance (CEA) is governed by specific rules and provisions to provide financial assistance to government employees for the education expenses of their children. Here are the key rules and regulations associated with CEA:

  1. Education and Hostel Charges Exemeption

    CEA covers two major areas of expenses for the focussed employee:

    • Education Allowance: Under this allowance, the government employee can claim Rs. 100/child each month for up to two children. However, if CEA is applied for a third child, it will not be eligible for reimbursement.

    • Hostel Charges Allowance: The current allowance for hostel charges is Rs. 300/child, limited to two children of a family.

  2. Section 10(14) of the Income Tax Act, 1961

    The details of the costs incurred under Children Education Allowance are covered under Section 10(14) of the Income Tax Act. This section defines the eligible exemptions and the criteria for claiming tax benefits related to education expenses.

  3. Section 80C and Tuition Fee Exemptions

    Section 80C of the Income Tax Act outlines the expenses eligible for tax deductions. As of 2020, individuals can claim tax breaks on all sums paid as tuition fees to schools, colleges, universities, and other educational institutions. However, the exemption will be allowed only if these educational institutions are recognized by competent Central or State bodies.

  4. Exclusions from Exemptions

    The following expenses are not eligible for exemptions:

    • Development Fees: Payments made as development fees are not eligible for tax benefits under CEA.

    • Transportation Costs: Any amount paid solely for transportation purposes is not eligible for tax exemption.

    • Non-Educational Expenses: Any payment not directly associated with educational purposes, such as fees for non-educational activities or charges unrelated to academic pursuits, does not qualify for tax benefits.

  5. CEA Applicability

    As of 2020, CEA is applicable up to Standard 12 (Class 12). However, there have been proposals from salaried individuals and education policy experts to extend this exemption to Graduate and Post-Graduate courses as well. As of now, there has been no official word from the Income Tax Department or the Central Government on implementing these proposed extensions.

  6. Limitations on Children Education Allowance

    It is important to adhere to the limitations set forth by the government regarding CEA. The exemption is allowed only for the costs directly related to education and hostel charges for up to two children. Any amount claimed for more than two children or expenses not meeting the specified criteria will not be eligible for reimbursement or tax benefits.

    Government employees intending to claim CEA should keep proper documentation of the expenses incurred, including fee receipts and certificates from recognized educational institutions.

Investment Investment
Secure Secure
Child Banner
Secure your child’s future with or without you
Start Investing
₹10,000/Month
& Get
₹1 Crore*
*Standard T & C Apply

What is the Eligibility Criteria to Apply for Exemptions Under Section 80C?

To fully avail of the income tax benefits related to children education allowance, salaried individuals must meet the following eligibility criteria:

  • Scope of Eligibility: The tax deductions are applicable to biological parents. If the parents are not available, legal guardians or sponsors can also claim exemptions.

  • Maximum Benefits Allowed: Each parent or guardian can claim a maximum deduction of Rs. 1.5 lakh per year. This limit includes deductions under Sections 80C, 80CCC, and 80CCD. The total claim for tax relief cannot exceed Rs. 1.5 lakh per annum, even if both parents are eligible to claim.

  • Qualifying Level of Education: The deductions are available for children studying up to class 12. It is applicable even if the educational institution is affiliated with foreign higher-education facilities or universities.

  • Full-Time Courses: Only full-time educational courses are eligible for these exemptions. Part-time courses do not qualify for tax benefits under the existing rules.

  • Single Parent and Adoption: The deduction can be claimed by a single parent as well. Additionally, if a couple decides to adopt a child, they are also eligible to apply for these tax benefits.

By understanding and fulfilling these eligibility criteria, individuals can make the most of the tax exemptions available under Section 80C for children education allowance.

People also read: Sukanya Samriddhi Yojana

What is the Procedure to Claim Tax Exemptions for Child Education Allowances?

Claiming tax exemptions for Children Education Allowance (CEA) can be made simpler by following these steps:

  • Education Allowance Tax Benefits: Obtain a certificate duly attested by the head of the educational institution where the child is enrolled. This certificate should confirm the child's status as a bonafide student of that institution.

  • Hostel Charge Allowance: Obtain a duly-attested certificate from the institution head, explicitly mentioning the total costs incurred for boarding and food at the hostel. This certificate serves as proof that the enrolled child is using hostel accommodation.

**Ensure that all the necessary details, including the certificates and expenses related to CEA, are reflected in Form 12BB before seeking reimbursement from the employer.

Child Education Allowances & the 7CPC 

The 7th Central Pay Commission (7CPC) was a government-appointed body responsible for reviewing and recommending changes to the pay structure and allowances for central government employees in India. The 7CPC's recommendations had a significant impact on various allowances, including those related to Children Education Allowance (CEA). 

Below mentioned tables show the increase in monthly CEA:

Component Allowance Each Month Before 7CPC Allowance Each Month After 7CPC
For Education Rs. 1,500 Rs. 2,250
For Hostels Rs. 4,500 Rs. 6,750

Conclusion

The Children Education Allowance (CEA) is a crucial government benefit that recognizes the importance of education in shaping the future of our nation. It serves as a financial support system for government employees, enabling them to provide quality education to their children without undue financial burden.

People also read: Sukanya Samriddhi Yojana Calculator

FAQ's

  • How much CEA can a government employee receive?

    The amount of CEA that a government employee receives depends on the number of children they have and the level of education they are studying at. The current rates of CEA are as follows:
    • Up to Rs. 2,250 per month for each child studying in a primary or secondary school.

    • Up to Rs. 3,000 per month for each child studying in a higher education institution.

  • What are the benefits of CEA?

    The CEA is a valuable benefit that can help government employees meet the educational expenses of their children. The allowance is tax-free and can be used to reimburse a variety of educational expenses. The CEA is a great way to help government employees cover the costs of educating their children.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The lumpsum benefit is calculated if policyholder invested ₹10000 monthly for 10 years in the fund with a policy term of 20 years. This Point To Point past performance data of last 10 years has been used to illustrate a scenario for the customers benefit. It is assumed that the past 10 years returns would have also been delivered in last 20 years. This is not guaranteed and not in anyway indicative of what the customer may actually get 20 years from now. The investment is subject to market risk and the risk is borne by the policyholder.
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.

child plan investment

Investment

child plan secure

Secure

Secure your Child’s
Career Goal
Start Investing ₹10,000/Month
& Get ₹1 Crore*
*Standard T & C Apply
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3

Child plans articles

Recent Articles
Popular Articles
Child Education Planner

05 Feb 2024

Ensure your child's dreams come true with a Child Education
Read more
Indian Bank Education Loan

16 Jan 2024

Indian Bank stands tall as a reliable partner in your academic
Read more
Education Loan for Abroad Studies

16 Jan 2024

Pursuing international education is a dream for many aspiring
Read more
Education Loan Without Collateral

16 Jan 2024

An Education Loan Without Collateral is a financial solution
Read more
Canara Bank Education Loan

15 Jan 2024

Canara Bank Education Loan is a comprehensive financial solution
Read more
Top 12 Government Schemes for Girl Child
Top 12 Government Schemes for Girl Child Government schemes for the girl child are a vital aspect of social welfare
Read more
Best Child Investment Plans to Invest in 2024
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial
Read more
Prime Minister Schemes For Boy Child
The Prime Minister Schemes for Boy Child stand as an important initiative aimed at nurturing the boy child and
Read more
Bhagya Lakshmi Yojana
Bhagya Lakshmi Yojana is a welfare scheme launched by the Government of Karnataka in 2006 to improve the sex
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL