{"id":5123,"date":"2019-01-11T09:00:29","date_gmt":"2019-01-11T03:30:29","guid":{"rendered":"http:\/\/www.apnaplan.com\/?p=5123"},"modified":"2019-01-13T11:07:51","modified_gmt":"2019-01-13T05:37:51","slug":"how-your-children-can-help-you-save-taxes","status":"publish","type":"post","link":"https:\/\/www.apnaplan.com\/how-your-children-can-help-you-save-taxes\/","title":{"rendered":"How your Children can Help you Save Taxes?"},"content":{"rendered":"
This is third in series of how your family members can help you save taxes. Here are the first two:<\/p>\n
In this post we tell you how your children can be part of your tax planning and in the process help you save taxes.<\/p>\n
As per income tax rules, an adult child (with age more than 18 Years) is considered an independent entity for income tax<\/strong> and any income earned by them is not clubbed<\/strong> with their parents. So if your adult child does not have any income (as happens in most cases at least till the child is 22 years of age), you can invest on his\/her name and save good amount in taxes. Here is an example:<\/strong><\/p>\n Usually by the time children are adult, people have good amount in fixed deposits mainly for their children\u2019s education\/marriage. It would be good idea to transfer the amount to your child\u2019s account and save your taxes!<\/p>\n However there is also a note of caution<\/strong>, you should also look into the psychological and legal aspect of these kinds of investments. Your son\/daughter is the legal owner of the investment and so he\/she is in position to liquidate the investment. So only follow this route if you think your child is with you and won\u2019t do anything without your permission.<\/p>\n Remember maintaining healthy relationship is much more important than saving taxes!<\/em><\/p>\n Download:<\/strong>Tax Planning ebook for Salaried for FY 2018-19<\/a><\/p>\n<\/blockquote>\n Section 80C of income tax allows you to claim exemption up to 1 Lakh on tuition fee for maximum of two children in a financial year. Below are some points to be kept in mind for above exemption:<\/p>\n Also Read:\u00a013 Important Changes in Tax Rules from FY 2018-19\u00a0<\/a><\/p>\n<\/blockquote>\n As per income tax rules, the income of minor children (below 18 years of age) is clubbed with the parent having higher income<\/strong>. But there is small caveat.<\/p>\n There is exemption of Rs 1,500 per child for two children<\/strong>. So you can invest Rs 15,000 earning 10% interest on each of your child\u2019s name and get the interest tax free.<\/p>\n Go ahead plan your taxes and don\u2019t forget to include your spouse<\/a>, parents<\/a> and children in saving taxes!<\/strong><\/p>\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" This is third in series of how your family members can help you save taxes. Here are the first two: How investing intelligently on your wife\u2019s name can save taxes How your parents can lower your taxes In this post we tell you how your children can be part of your tax planning and in […]<\/p>\n","protected":false},"author":1,"featured_media":5124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[3013,63,6],"tags":[401,2379,2331,886,527],"uagb_featured_image_src":{"full":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",572,337,false],"thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes-150x150.png",150,150,true],"medium":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes-300x176.png",300,176,true],"medium_large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",572,337,false],"large":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",572,337,false],"1536x1536":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",572,337,false],"2048x2048":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",572,337,false],"yarpp-thumbnail":["https:\/\/www.apnaplan.com\/wp-content\/uploads\/2014\/06\/Children-can-help-you-save-taxes.png",120,71,false]},"uagb_author_info":{"display_name":"Amit","author_link":"https:\/\/www.apnaplan.com\/author\/admin\/"},"uagb_comment_info":11,"uagb_excerpt":"This is third in series of how your family members can help you save taxes. Here are the first two: How investing intelligently on your wife\u2019s name can save taxes How your parents can lower your taxes In this post we tell you how your children can be part of your tax planning and in…","_links":{"self":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5123"}],"collection":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/comments?post=5123"}],"version-history":[{"count":0,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/posts\/5123\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media\/5124"}],"wp:attachment":[{"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/media?parent=5123"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/categories?post=5123"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.apnaplan.com\/wp-json\/wp\/v2\/tags?post=5123"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Your child would be considered as adult by income tax rules in the financial year he turns 18. So you can start investing even when he is 17 but would be 18 before March end of the financial year.<\/p>\n\n
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2. Claim Tuition Fee for Tax Exemption<\/h2>\n
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3. Investing on the Name of Minor Children<\/h2>\n