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Showing posts with label Save Income Tax. Show all posts
Showing posts with label Save Income Tax. Show all posts

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Business plan , Cash flow , Income , investment plans in India , regular , Save Income Tax , saving

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Wiser Way to Save Income Tax | Children can help to save Tax

Children helps to save tax , Gift Tax , income tax saving tricks , investing tax money , Save Income Tax , saving tax money , Tax in Inida , Tax slab
tax saving tricks, tax in India, how children can save tax





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 Your major children can help to save tax. Any payment made gift to your major children is exempted from Gift Tax.  The income generated from these gifts in the years to come will be taxed in the hands of your major children.

For example, if you gift a FD to your major daughter or major son, then the gifted amount is a capital in their hand and exempted from any gift tax. When the interest generated on the FD in their name will attract the tax subjected it’s above the taxable limit.
Like if the major daughter or major son receives an interested of Rs. 1,00,000 on gifted FD or deposits, the amount is free from the tax as its below the taxable limit of Rs.1,80,000 and Rs.1,50,000.

This will help you to take the benefit of taxable limits of your major children and they become the major source for you to save the tax.
The other option is, you can also give interest free loans to your major children to lower the tax liabilities. This is the best option if you don’t want to gift huge amount to your major children.





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