Your parents can help you a lot with tax saving, know the way – News18 Hindi

New Delhi. Filing the income tax return (ITR submission) Taxpayers have many ways to save on taxes. In these investments in various programs, EMI of home loans (Home Loan EMI), housing rent subsidy etc. are included. But you can also successfully save taxes with the help of your parents. Because elderly people receive certain deductions under various sections of the Income Tax Act 1961.

If you let your parents do your investment and tax planning, your tax burden will decrease but your parents’ tax expenditure will increase. Therefore, tax planning should be done in such a way that the total tax burden on the family does not exceed the previous tax burden. There are certain tax rules that will help you with this.

Also read this – All ways to save on income taxes, together in one place… So watch now and plan

Gift to parents or invest in their name
You can give money to your parents, or your parents can give you money without any tax complications. In other words, if your parents receive money from you, it is not taxed and the income from it is not part of your taxable income. You can give parents money for investment purposes. The income from the money you gave to your parents will be considered taxable in their return.

Pay room rent to parents and request HRA
If you live on your parents’ property or house, you can pay them rent and housing benefit within the exemption limit according to Section 10 (3A). (HRA) can exploit. This method works if your parents fall into a lower tax bracket than you. If your parents are seniors or have no taxable income, you can save significantly on taxes as a family. In order to properly claim your HRA deduction, you must wire the rent into your bank account or pay by check.

Also read this – Section 80C aside, you can also save on taxes this way, know how to benefit

Take out health insurance for parents
Purchasing health insurance for your parents can help you increase the tax deduction benefit significantly. Because the taxpayer can claim the expenses incurred for the care and maintenance of his parents. This exemption is subject to certain conditions and limits and is available under Sections 80D, 80DD and 80DDB of the Income Tax Act.

Under Section 80D of the Income Tax Act, an individual taxpayer can claim a deduction for the health insurance premium paid for their parents. The maximum deduction is Rs 25,000 and this limit increases to Rs 50,000 if the parent is a senior citizen.

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Key word: health insurance, income tax planning, Income Tax Refund, ITR filing, Money making tips, personal finance, retirement savings plan