When it comes to tax savings, exploring all available avenues is essential.
Beyond investments and expenses, your family can play a pivotal role in maximizing your income tax savings. Learn how each member can contribute to reducing your tax burden:
Parents’ Tax-Saving Strategies:
1. Pay Rent to Parents, Claim HRA:
If living with parents and unable to claim HRA, pay them rent to avail HRA benefits under Section 80GG.
2. Invest in Tax-Saving Schemes in Parents’ Name:
Enjoy additional benefits for senior citizens by investing in tax-saving schemes in your parents’ name, offering tax benefits and higher interest rates.
3. Health Insurance for Parents:
Secure health insurance for your parents and receive tax exemptions on premiums up to Rs 25,000 (Rs 50,000 if parents are above 65 years).
Spouse’s Tax-Saving Collaborations:
1. Joint Home Loan for Enhanced Benefits:
Opt for a joint home loan with your spouse to claim double tax benefits on both principal (up to Rs 1.5 lakh each) and interest (up to Rs 2 lakh each).
2. Invest in Stock Market in Spouse’s Name:
Give money to your spouse and invest in the stock market, utilizing their lower tax liability for capital gains up to Rs 1 lakh.
3. Education Loan for Spouse’s Studies:
If your spouse desires further education, take an education loan in their name to avail tax exemption on interest under Section 80E for 8 years.
4. Health Insurance for Spouse:
Obtain separate health insurance for your spouse or include them in a family floater plan, eligible for tax deduction up to Rs 25,000 under Section 80D.
Children’s Contributions to Tax Savings:
1. Deduction on School/College Fees:
Claim up to Rs 1.5 lakh deduction under Section 80C for tuition fees paid for the education of your children.
2. Invesment in the Name of Children:
Invest in PPF, Sukanya Samriddhi Account, Mutual Funds, or Traditional Insurance Policies in the name of your children to avail deductions under Section 80C.
3. Education Loan for Children:
Take an education loan for your child’s studies and claim tax deduction under Section 80E.
4. Health Insurance for Children:
Include your children in a family floater health insurance plan to enjoy tax benefits on premiums paid under Section 80D.
Harnessing the tax-saving potential of your family members ensures a comprehensive approach to financial planning and optimization.
Always consult with a tax professional for personalized advice based on your specific circumstances.
