The Outdated Exemption: Rethinking Children’s Education Allowance
- IJLLR Journal
- 5 days ago
- 1 min read
Shivansh Singh, Presidency University, Bangalore
Abdul Hannaan Siddiqui, Presidency University, Bangalore
Suhail Ahmad, Presidency University, Bangalore
ABSTRACT
Allowances and deductions are used by tax systems around the world not just to manipulate income but also as social policy tools to alleviate households' and individuals' financial hardships. The Children Education subsidy is one such subsidy in India that was put in place to help parents pay for their child's education. However, each child's exemption under this allowance is still limited to a maximum of 100 rupees per month; this amount hasn't been revised in decades. This article examines the allowance's initial rationale, situates it within the broader context of fiscal incentives, and highlights the stark disparity between the statutory relief and the true cost of education in contemporary India. It also examines cross-country patterns in other territories, the role of tax policy as a tool of social fairness, and constitutional commitments to education. Finally, the argument makes the case that the allowance in its current form is symbolic rather than substantive and ends with recommendations for changes that could give this clause context and make it appropriate for the modern economy.
