Perquisites - Education Facility - Rule 3(5) - Income Tax - Ready Reckoner - Income Tax

Rule 3(5) : FREE OR CONCESSIONAL EDUCATION FACILITY Where the educational facilities are provided in an educational institution which is owned and maintained by the employer or in any other institution by reason of employee s employment with employer to the employee s children and cost of such education or the value of such benefit Does not exceed 1,000 p.m. per children Taxable Value is Nil Does exceed 1,000 p.m. per children Taxable Value is = Cost of such education in a similar institution in or near the locality Less: 1000 p.m. per children Less: Amount paid or recovered from the employee to the member of his household (other than employee s own children) Taxable Value is = Cost of such education in a similar institution in or near the locality Less: Amount paid or recovered from the employee Notes: Amount spent for providing free education facilities to, and training of the employee is not taxable. School fees paid by the employer directly to the school or reimbursement of expenditure incurred is taxable as a perquisite in case of all employees u/s 17(2)(iv) Children includes stepchild as well as the adopted child of the employee but does not includes grandchildren and other members of household .