Children education allowance received by an employee from his employer is ₹80 per month per child for 3 children. Taxable education allowance will be —

Correct answer: (A) ₹960. Exemption is limited to two children. Allowance for the third child, 80×12 = 960, is taxable. This answer applies to the historical law and assessment-year context of this December 2014 paper; later amendments may differ.