Education · allowance
Hostel expenditure allowance
A monthly hostel exemption per child, for up to two children — old regime only.
How the taxable value is determined
Exempt up to ₹300 per month per child for a maximum of two children. Withdrawn under the new regime.
Regime availability
- Old regime
- Available
- New regime
- Not available
Documentation to keep
Hostel fee receipts.
Legal basis: Rule 2BB(2), Income-tax Rules
Frequently asked questions
Is hostel expenditure allowance taxable in India?
A monthly hostel exemption per child, for up to two children — old regime only. Exempt up to ₹300 per month per child for a maximum of two children. Withdrawn under the new regime.
Does the exemption apply under the new tax regime?
Under the old regime this treatment is available; under the new regime it is not available. Legal basis: Rule 2BB(2), Income-tax Rules.
What records should I keep for hostel expenditure allowance?
Hostel fee receipts.
Related tools & guides
Reflects provisions in force for FY 2026-27; verify against the latest government publications (incometax.gov.in). Information, not tax advice.