Types of Fee reimbursable under Section 10(14)
According to Section 10(14) of the Income Tax Act, 1961, the following types of fees are reimbursable:
- Tuition fees
- Admission fees
- Laboratory fees
- Special fees charged for electronics, music, agriculture, or any other subject
- Practical work fees
- Fees paid for the use of any aid or appliances by the child
- Library fees
- Games/sports fees
- Fees for extra-curricular activities
These fees must be paid directly to the educational institution by the child. The employer cannot reimburse the employee for fees that have already been paid by the child or the parent.
The maximum amount of reimbursement that an employee can receive under Section 10(14) is Rs. 100 per month per child, up to a maximum of two children. This means that an employee can receive a maximum reimbursement of Rs. 2,400 per year for their children's education.
To claim the reimbursement, the employee must submit the following documents to their employer:
- A copy of the child's school or college certificate
- A copy of the fee receipt issued by the school or college
- A declaration that the fees have been paid directly to the educational institution by the child
The employer will then be able to reimburse the employee for the fees.
It is important to note that Section 10(14) only applies to salaried employees. Self-employed individuals and pensioners are not eligible for the reimbursement.
If you have any questions about Section 10(14) or the reimbursement process, you should consult with your employer or a tax advisor.