Section 19 - Insertion of new section 87A - Finance Act, 1964

19. Insertion of new section 87A After section 87 of the Income-tax Act, the following section shall be inserted, namely:- 87A. Rebate on educational expenses in certain cases. Where an individual, being a resident, who is not a citizen of India has expended any sum in the previous year out of his income chargeable to tax for the full-time education of his child wholly or mainly dependent on him and who is not more than twenty-one years of age at any University, college, school or other educational institution situate in a country outside India, he shall be entitled to a deduction, from the amount of income-tax on his total income with which he is chargeable for any assessment year, of an amount equal to the income-tax calculated at the average rate of income-tax on a sum- (i) which, in the case of an individual who has one such child, shall not exceed two thousand rupees or twenty-five per cent. of his total income, whichever is less; and (ii) which, in the case of an individual who has more than one such child, shall not exceed four thousand rupees or twenty-five per cent. of his total income, whichever is less. .