Income Tax Season: 3 ways how investing for new-born baby can help you save tax up to Rs 1.50 lakh in a financial year
SSY: If your daughter is below 10 years of age then you can start investing in this scheme for your child. In this scheme, interest is available at the rate of 8.2 per cent. In this, a maximum of Rs 1.5 lakh can be deposited annually and the minimum deposit limit is Rs 250 annually.
Income tax return (ITR) filing season is going on and everyone wants to save as much as tax possible. For that, you will have to either choose old or new tax regime. Both regimes have their own benefits according to a person's salary.
New-born baby can help you save tax up to Rs 1.50 lakh
Now, do you know that a new-born baby can also help you to save tax of up to Rs 1.50 lakh?
How to save tax
Here are ways to save tax by investing under child investment schemes.
Sukanya Samriddhi Yojana (SSY)
If your daughter is below 10 years of age then you can start investing in this scheme for your child. In this scheme, interest is available at the rate of 8.2 per cent. In this, a maximum of Rs 1.5 lakh can be deposited annually and the minimum deposit limit is Rs 250 annually.
PPF
You can invest money in PPF keeping in mind your child's education or any other future need. At present, the interest of 7.1 per cent per annum is being given under PPF, which is much higher than the fixed deposits (Bank FD) of most of the banks. Investment in PPF can start from Rs 500. The maximum investment limit in a financial year is Rs 1.5 lakh.
Insurance premiums
You can get tax exemption under Section 80D on whatever premium you pay for a child's health insurance. Tax exemption is available on the total premium of up to Rs 25,000 on health insurance for parents and children. You can also get tax exemption on preventive health checkups of Rs 5,000.