Helper / Assistant Allowance Research Allowance treated as expenditure in performance of duties of office and consequently not covered under this allowance. (Refer Transport allowance) Any allowance (by whatever name called) to meet the expenditure of assistant or helper, provided such helper is appointed for the performance of duties of an office. Taxpoint: Servant allowance is fully taxable Any allowance, by whatever name called, granted to encourage academic research and other professional pursuits. This allowance may also be termed as Professional Development / Academic allowance Any allowance, by whatever name called, to meet the expenditure on purchase or maintenance of uniform wear, during the performance of duties of an office, Taxpoint: Uniform allowance is different from Dress allowance. Dress allowance is fully taxable Uniform Allowance Tax Treatment of aforesaid allowances: Minimum of the following shall be exempted: a) Actual amount received or -) Actual expenditure incurred for such purpose f16 Allowances, deduction from which do not depend on actual expenditure (Sec. 10(14) (10)] Children Education Allowance An allowance to meet the expenses in connection with education of children, by whatever name called Treatment: Minimum of the following is exempted from tax a) 100 per month per child (to the maximum of two children) 5) Actual amount received for each child (to the maximum of two children) Children Hostel Allowance An allowance to meet the hostel expenses of children, by whatever name called Treatment: Minimum of the following is exempted from tax a) 300 per month per child to the maximum of two children) b) Actual amount received for each child (to the maximum of two children) Notes for Children Education Allowance and Hostel Allowance: a) Child includes adopted child, step.child but does not include illegitimate child and grandchild b) Child may be major or minor child. c) Deduction is available irrespective of actual expenditure incurred on education of child. ILLUSTRATION 10 Mr. Laloo Singh, received education allowance of 80 pm for his 1st child, 90 p.m. for his 2nd child and 120 pm or his 3rd child. He also received hostel allowance of 1,000 pm None of his children are studying. Find taxable Children Education Allowance and Hostel allowance