Valuation of perquisite in respect of free education:- The basis of valuation is explaibed below

1. Training of Employees- Amount spent for providing free education facilities to and training of the employee is not taxable.

2. Fixed education allwance for children:- Fixed education allownace given in cash by the employer to the employee to meet the cost of education of the family members of the employee is not taxable to the extent of Rs. 100 per month per child . An additional exemption is available in respect of allowance granted to meet hostel expenditure at the rate Rs. 300 per month per child for  for a maximum of two childeren . The remaining amount is taxable in all .

3. Payment of school fees of employee's children:- School fees of the family members of the employee paid by the employer directly to the school is taxable as a perquisite in all case .

4. Reimbursement of school fees of employee's childern :- Rembursement of expenditure incurred for education of the family membersof the employee is taxable as a perquisite in all cases (i.e. specified employee as well as non - specified employee).