Investments made for children and their tuition fees can also be availed of tax exemption. Before filing ITR, be sure to know what expenses or investments can be availed of tax exemption.
Before filing income tax return, you should be aware of what expenses or investments you can avail of the tax rebate. You can also avail tax rebate on investments made for your children and their tuition fees. Let us know that by March 31, 2021, income returns have to be financed for 2020-21.
Investment for children
By investing in Sukanya Samriddhi Yojana, you can get tax rebate on investments up to 1.5 lakh under 80C. If your daughter’s age is less than 10 years, then you can invest in this scheme.
If your son or daughter is older than 10 years, then you should invest in other schemes including PPF or ULIP where you can get tax benefits under 80C.
If you pay health insurance premium for your children, deduction of up to 25 thousand rupees can be taken under section 80D.
On paying premium for a term life insurance plan, you get the benefit of tax exemption under Section 80C of the Income Tax Act.
There is no need to get a new plan every year. The annual renewal premium in a policy can also be tax exempt under section 80C.
Relief on tuition fees
A tax benefit of up to Rs 1.5 lakh can be taken under section 80C on tuition fees of school / college for two children.
You can make this claim only when the fees are paid to a university, college, school or other educational institution based in India.
Keep in mind that tax relief is available only for full time education.
You can claim tax deduction under section 80E on education loan taken for children.
Under section 80DDB, there is an income tax deduction on the amount spent in the treatment of serious and prolonged illness of one of his dependents.
The income tax payer can claim deduction of the amount spent in the treatment of his parents, children, dependent siblings and wife.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.