2 Kids in School? Save ₹36,000 in Tax You're Missing
If you have kids in school, the government lets you reduce your taxable income through education allowance, hostel allowance, and Section 80C tuition fee deductions. Most salaried parents don't use all three — and lose real money every year.
Most parents spend ₹500/month on tuition but forget to claim the ₹100/month tax exemption sitting right in their salary slip.
Your child's school fees can cut your tax bill by this much — per child
Key Takeaways
Check your salary slip right now — ask HR to add Children's Education and Hostel Allowance components if they are missing from your CTC structure.
Collect your child's school tuition fee receipts for FY2024-25 and declare the amount under Section 80C in your ITR or through your employer's investment declaration.
If you have 2 children, calculate your combined annual allowance exemption: ₹100x2x12 + ₹300x2x12 = ₹9,600 tax-free — confirm this appears in Form 16 before filing.
If you have kids in school, the government lets you reduce your taxable income through education allowance, hostel allowance, and Section 80C tuition fee deductions. Most salaried parents don't use all three — and lose real money every year.
Here's what happened: Salaried employees can claim ₹100/month per child as Children's Education Allowance and ₹300/month per child as Hostel Expenditure Allowance — fully exempt from tax.. Section 80C allows deduction of actual tuition fees paid to any school, college, or university in India — up to ₹1.5 lakh combined with other 80C investments.. Both allowances cover a maximum of 2 children per employee, and tuition fees paid to private coaching centres or foreign institutions do not qualify for the deduction..
What you should do: Check your salary slip right now — ask HR to add Children's Education and Hostel Allowance components if they are missing from your CTC structure.. Collect your child's school tuition fee receipts for FY2024-25 and declare the amount under Section 80C in your ITR or through your employer's investment declaration.. If you have 2 children, calculate your combined annual allowance exemption: ₹100x2x12 + ₹300x2x12 = ₹9,600 tax-free — confirm this appears in Form 16 before filing..
Tuition fee under 80C means ONLY the tuition component — not development fees, transport, or annual charges. Ask your school for a fee breakup receipt to claim the correct amount.
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- [1]“Your child's education can help you save tax: Eligibility, rules, limits for school and hostel fee exemption” mint - money · 12 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.