With support from your relatives, Save Tax this year
In providing emotional and financial support, the family helps a lot. Your household members will also help save taxes for you. However, any of your family’s contributions and rebates are not liable for savings tax.
Here are some of the ways in which your family can help save taxes and slash your tax bill:
# 1. The Buy Insurance for Health:
Health care is a condition for tax benefits. If an individual purchases it for himself, only Rs 15,000 will be saved. On the other hand, he can save around Rs 40,000 if a man buys insurance claims for his entire family.
Under Section 80 D, the premium for health insurance may be stated with a cumulative deduction of Rs 15,000. This is the expense of the claim for a partner, kids, and you.
In the case of parents, an argument concerning Rs 20,000 may be used.
Invest by spouse: # 2.Invest by spouse:
You can donate the money to your spouse and invest in tax-free instruments if your cap for Section 80 C is reached. Public Provident Funds and ELSS systems are these methods. For a non-earning partner, these resources can work well. You would not have any tax responsibility if you keep the money in your partner’s name for more than one year.
# 3. Loan Giving to Spouse Money:
For tax savings, the safest way is to present the financial transaction as a loan. The income from the rent will not be treated as yours if you buy a house in the name of your wife or give her the second property.
As the value of the property is in your favor, your spouse will pass her jewelry. Under your signature, even the rental revenue would not be counted as taxable.
# 4. Also, kids can help:
An individual may demand a deduction for his children’s educational expenditures. You should give your younger children some money as well.
In tax-free instruments such as ULIP and PPF schemes, you can plan this cash. You can open a small account in the name of your children and it won’t be taxable. There is, however, a limitation for your own, and Rs 1 lakhs is your child’s account.
For your children, you can obtain a Child Insurance Plan that is excluded under Section 80 C of the 1961 Income Tax Act.
# 5.Adult kids should save:
You can pass your money to a minor who is below the age of 18. This way, you will have another exemption of 2 lakhs that you can enjoy.
As a consequence, there is also a 1 lakh increase in your PPF value. All the savings made for the future of the child should be shifted to the name of the child.
# 6. Paying parents to rent a house:
If you live in the house that is in their name with your parents, pay them the ren, t and you are liable for the HRA (House Leased Allowance). As a deduction for maintenance costs such as repairs, insurance, and much more, parents will claim about 30 percent of the annual rent.
When your parents also own the house, an individual may enjoy a greater advantage. All earnings may be divided from the rent and separate tax obligations can be seen.