Do you know that your family can also help you in saving your income tax? Yes, your parents, your spouse and your children can all play a big role in saving tax.
Whenever it comes to saving tax, people want to use all kinds of tools. Do all types of investments. Some types of expenses are also incurred. But do you know that your family can also help you in saving your income tax? Yes, your parents, your spouse and your children can all play a big role in saving tax. Let us know how your family can save your tax.
First know how parents can save tax
Parents can save their taxes in 3 ways. Let us know what you have to do, so that you can avail this benefit.
1- Pay rent to parents, claim HRA
If you live with your parents and are not able to claim HRA, then you can claim HRA by paying rent to your parents. If you are thinking that this is wrong then it is not so. Under Section 80GG of the Income Tax Act, you can get tax deduction on HRA by showing your parents as tenants. Under this, you can show that you pay rent i.e. house rent to your parents. However, if you are taking any other housing benefit then you will not be able to claim HRA.
2- Take tax saving scheme in the name of parents
In most tax saving schemes, additional benefits are given to senior citizens. If your parents are in the category of senior citizens, then you can invest in tax saving schemes in their name. You will get two benefits from this. Firstly, you will get tax benefits, while senior citizens also get more interest. Senior citizens do not have to pay any tax on interest income up to Rs 50 thousand in a year.
3- Take health insurance for parents
You can save your taxes while also taking care of your parents’ health. If you take health insurance for your parents, you get tax exemption on the premium amount. You will get tax exemption on premium up to Rs 25,000 on health insurance of parents below 65 years of age. If you are above 65 years of age, you will get the benefit of tax exemption up to Rs 50 thousand.
How can a spouse save tax?
If you are a man then your wife and if you are a woman then your husband i.e. your life partner can also help in saving tax. Husband and wife can help each other in saving tax in 3 ways.
1- Joint home loan will be beneficial
If you are thinking of buying a house, then buy it by taking a joint home loan and get it registered in both the names. In such a situation, both of you can claim tax benefits on home loan. If seen this way, you will get double the tax benefit. On the principal amount, both of you can claim Rs 1.5 lakh each i.e. a total of Rs 3 lakh under 80C. On the other hand, both can get tax benefit of up to Rs 2 lakh on interest under Section 24. That means, overall you can get tax benefit up to Rs 7 lakh. However, it will also depend on the amount of your home loan.
2- Give money to your wife and invest in the stock market.
If you invest money in the share market for long term, you will get tax exemption on capital gains up to Rs 1 lakh. In such a situation, if your wife’s earning is very less or she is a housewife, then you can give her some money and invest in the stock market in her name. In this way, on the returns you will get on that money, your wife will get tax exemption on capital gains up to Rs 1 lakh. Whereas if you had invested this money yourself and you already had a capital gain of Rs 1 lakh, then your total gain becomes Rs 2 lakh. In such a situation, you would have to pay tax on Rs 1 lakh.
3- Education loan for wife’s education
There are many girls who get married under family pressure, but later feel that they have to study further. In such a situation, if you take an education loan for your wife and she studies, then you will get tax exemption on the interest charged on that loan. You can get tax exemption on education loan interest for 8 years. You get this exemption under section 80E. However, while taking the loan, you have to keep in mind that you should take the student loan from a bank or institution which is recognized by the government.
4- Health Insurance
If you want, you can get health insurance for your wife separately or you can take health insurance under family floater insurance. Under Section 80D, you can avail tax deduction up to a maximum of Rs 25,000 on the premium paid for health insurance for yourself, spouse and dependent children.
Children can also save tax
Not only parents or husband-wife, children can also play an important role in saving tax. Let us know how children can save tax.
1- Children’s school/college fees
If your children are studying, you can claim a deduction of up to Rs 1.5 lakh on their school or college fees under Section 80C. This benefit is not available on the entire school/college fees, but tax exemption is available only on its tuition fees. This exemption can also be availed up to a maximum of two children.
2- Health Insurance
The family floater scheme that you take for yourself and your spouse will also include the child. Under Section D, tax exemption on premium up to Rs 25,000 is available on all these.
3- Investment in the name of children
If you want, you can also invest in the name of children. For this you can take help of PPF, Sukanya Samriddhi Account, Mutual Funds Account, Traditional Insurance Policy. The investment you make in this, you get deduction under section 80C.
4- Education loan for children
Just as you can claim tax deduction under section 80E by taking an education loan for your wife. Similarly, you can save tax under Section 80E by taking an education loan for your child’s education. You can take this loan for yourself, your wife, your child or a student for whom you are the legal guardian.
