Save Income Tax: Do you know that your family can also prove to be helpful in saving your income tax? Yes, your parents, your husband or wife and your children can all play a big role in saving tax.
Save Income Tax: Whenever it comes to saving tax, people want to use all kinds of tools. The last date for filing ITR, 31 July, is fast approaching. People make all kinds of investments to save tax. At the same time, some types of expenses are also made for tax saving. But do you know that your family can also prove to be helpful in saving your income tax? Yes, your parents, your husband or wife and your children, all can play a big role in saving tax. Let’s know how your family can save your tax in 11 ways.
First know how parents can save tax
Parents can save your tax in 3 ways. Let’s know what you have to do so that you can take advantage of this.
1- Pay rent to parents, claim HRA
If you live with your parents and are unable 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 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, senior citizens are given additional benefits. If your parents are in the category of senior citizens, then you can invest in tax saving schemes in their name. This will give you two benefits. 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 of up to Rs 50,000 in a year.
3- Take health insurance for parents
You can save your tax while taking care of your parents’ health. If you take health insurance for your parents, then you get tax exemption on its premium amount. You will get tax exemption on premium up to Rs 25,000 on health insurance of parents below 65 years of age. At the same time, if you are above 65 years of age, you will get the benefit of tax exemption up to Rs 50,000.
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. life partner can also help you in saving tax. Husband and wife can help each other in saving tax in 4 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 the name of both. In this case, both of you can claim the tax benefits available on home loan. In this way, you will get double benefit in tax. Both of you can claim Rs 1.5 lakh each on the principal amount i.e. a total of Rs 3 lakh under 80C. On the other hand, both of you can get tax benefit of up to Rs 2 lakh each on interest under section 24. That is, in total, you can get tax benefit of up to Rs 7 lakh. However, it will also depend on how much your home loan is.
2- Give money to your wife and get it invested in the stock market
If you invest money in the stock market for long term, then you will get tax exemption of up to Rs 1 lakh on capital gain. In such a situation, if your wife’s income is very low or she is a housewife, then you can give her some money and invest it in the stock market in her name. In this way, your wife will get tax exemption on capital gains up to Rs 1 lakh on the return on that money. On the other hand, if you invest this money yourself and you already have 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 they feel that they have to study further. In such a situation, if you take an education loan for your wife and she studies with it, then you will get tax exemption on the interest charged on that loan. You can get tax exemption on the interest of education loan for 8 years. You get this exemption under section 80E. However, while taking a loan, you must keep in mind that you should take a 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 of up to 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’s know how children can save tax.
1- Children’s school / college fees
If your children are studying, then you can claim 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 only their tuition fees are tax exempted. This exemption can also be available for up to two children.
2- Health Insurance
The family floater scheme that you take for yourself and your spouse will also include the child. All these get tax exemption on premium up to Rs 25,000 under Section D.
3- Investment in the name of children
If you want, you can also invest in the name of children. For this, you can take the help of PPF, Sukanya Samriddhi Account, Mutual Funds Account, Traditional Insurance Policy. The investment you make in this is eligible for 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, 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 for a student whose legal guardian you are.
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