News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
News Headlines »
 How to report pension income while filing ITR
 How you can file income tax return online DIY guide to ITR filing
 How to file ITR-1 online
 How to file ITR-1 online
 New income tax rules with revised guidelines comes in effect from today
 7 things to keep in mind while filing Income Tax Returns ITR filing
 DIY guide to file your ITR
 Income Tax return online filing: Ensure your Form 16 is valid and here is how you can check for it
 How to report income from investments ITR filing
 How to file income tax returns?
 Will income tax department extend July 31 deadline for ITR filing?

Know how your family can help you save tax Filing income tax returns?
March, 04th 2019

The tax season is nearing its end and you must be grabbing every opportunity coming your way to minimalize your tax outgo. If you have already explored the popular go-to avenues under Section 80 (C), here are a few ways your dependents can help you reduce your tax liability.

Insurance premiums for parents

Health insurance premiums for your dependents – parents, spouse and children allow you tax deduction under Section 80 (D). While you can avail deduction up to Rs. 25,000 for your spouse and children. Through premium payment for your parents, you can get an additional deduction of Rs. 25,000. Premium payment for senior citizen parents can get you tax deduction worth Rs. 50000.

Dependents with disability and diseases

If your dependent relatives are disabled and are completely dependent on you, you can claim deductions under Section 80 (DD) for the expenses incurred for their treatment and rehabilitation. The amount paid towards buying specific schemes or policies for their maintenance is also eligible for deduction.

Tuition fees for children

Tuition fees for your children are eligible for deduction benefits under Section 80 (C) up to Rs 1.5 lakh. You can claim this benefit for the payment of school fees for up to two children. If you have girl children, you can also consider investment in Sukanya Samriddhi Yojna for availing tax benefits. Tuition fees for up to two children are eligible for tax deduction.

Education loan

Education loan taken for children are also eligible for tax deduction under Section 80 (E). Interest payment on education loan is entirely tax-free without any ceiling on the amount.

Pay rent to your parents

Salaried individuals can avail tax deduction in the form of HRA exemption for rent payment. This includes rent paid to parents if they live in the parents’ home. However, the house needs to be owned by the parents and it cannot be co-owned by you.

The rental payment would be taxable in the hands of the parents as per the applicable tax slab.

Invest in your parent’s name

You can reduce your tax outgo by transferring money to your parents' accounts and then investing in their name. Senior citizens are eligible for a basic tax exemption of Rs 3 lakh; people above the age of 80 years are eligible for tax exemption of Rs 5 lakh.

This amount would not attract gift tax in the parent’s hands. You can then invest the amount in a fixed deposit or other investment instruments in your parent’s name. If your parents fall under a lower tax slab, the tax liability would be lower than what it would have been, had you invested in your name. Your parents can avail further tax deduction by investing in instruments eligible for tax deduction under Section 80 (C). You can also transfer the money to your non-minor children or spouse, if they fall in a lower tax bracket than you to reduce tax liability.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions