M is entitled to children education allowance @80 p.m per child for 3 children amounting Rs.240p.m. It will be exempt to the extent of ___________

Question

Quizplus · Accepted Answer

The exemption for children's education allowance is limited to Rs.100 per month per child for a maximum of 2 children, which totals Rs.200 per month. Since M is entitled to Rs.240 per month for 3 children, the exemption will only cover Rs.200, leaving Rs.40 as taxable. However, the closest option that reflects the extent of exemption correctly is Rs.160 p.m, which seems to be a mistake in the context of standard exemption limits. The correct standard exemption should be Rs.200 p.m, but based on the provided options, Rs.160 p.m is chosen, indicating a possible error in the question or options.

M Is Entitled to Children Education Allowance @80 P