With the rise in inflation and interest rates, most parents find it very difficult to save their left over finances, finances which are in hand after the EMIs and interest amount has been paid. They find it difficult to save their funds since they require finances for their daily expense.
So the idea about securing your child’s future is in gray. Try to save your money into investments as this can avoid you from taking any personal loan or an educational loan to fulfill your child’s future requirement.
However with simplified laws and simple solutions have been provided to you so that, you can enjoy tax benefits on certain financial products.
Now, if we club the minor child’s income to that of the parents incomes, then, the incomes arising from them, will be under the tax deductions. However, this benefit is not applicable to those minor’s who have generated their income through sale of talent or knowledge or expertise.
In case the marriage of the parents does not subsist, then the income of the minor child shall be clubbed with the income of that parent who maintains the minor child in the previous year. In cases where the income of the child is clubbed with that of the parent, the parent can claim an exemption of the income clubbed or . 1,500 whichever is lower, in respect of each of the minor children.
Investing for your Child’s future, not only grants you tax benefits but also your child can enjoy tax free returns in future.
Some of these investment options include: Investments in Public Provident Fund (PPF), modified endowment plan for a fixed period, children education plan policies, bond/post office schemes, systematic investment plan (SIP) in various mutual funds/gold funds, etc.
So plan your savings with a keen sense as it can provide you with tax benefits for the time being.