Monday, September 12, 2011

Income Tax exemption limit for Children Education Allowance should be revised

National Federation of Indian Railwaymen(NFIR) General Secretary Mr.M.Raghavaiah has expressed his views in a letter on 1st September, 2011 to the Hon’ble Finance Minister regarding the exemption limit for Children Education Allowance under Income Tax Act.

He explained that the present exemption limit for Children Education Allowance (CEA) under section 10 (14) of the Income Tax Act is Rs.I00 per month per child. This limit as fixed more than 2 decades back when the maximum amount of Children Education AIlowance for Central Government Employees was fixed at Rs. 100/- per month per child under the IVth Central Pay Commission. Now the current rate of this allowance is Rs.1000 per child.

He further stated that the Federation feels that this can never be the intention of the Government as education and developing knowledge of youth is top priority matter for the country. The distortion has taken place due to non—revision of the exemption limit for payment of income tax.

Finally, NFIR requests the Hon’ble Finance Minister to kindly consider and grant enhancement of exemption limit as suggested above and make it effective from the financial year 2011—12.

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