Education · perquisite
Free education for children
Schooling provided in an employer-run institution is exempt only below a per-child monthly cost.
How the taxable value is determined
No perquisite where the cost per child does not exceed ₹1,000 per month. Above that threshold the entire cost is taxable, not merely the excess.
Regime availability
- Old regime
- Prescribed value applies
- New regime
- Prescribed value applies
Documentation to keep
School fee structure or the employer's cost per child.
Legal basis: Rule 3(5), Income-tax Rules
Frequently asked questions
Is free education for children taxable in India?
Schooling provided in an employer-run institution is exempt only below a per-child monthly cost. No perquisite where the cost per child does not exceed ₹1,000 per month. Above that threshold the entire cost is taxable, not merely the excess.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is not applicable — the value is prescribed, not exempted; under the new regime it is not applicable — the value is prescribed, not exempted. Legal basis: Rule 3(5), Income-tax Rules.
What records should I keep for free education for children?
School fee structure or the employer's cost per child.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.