Income Tax Season: How a new-born baby can help you save tax up to Rs 1.50 lakh

Zee Biz web team

ZeeBiz Desk

Jul 11,2024

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.

Here are 3 ways to save tax by investing under child investment schemes.

1- 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.

2- Public Provident Fund (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.

3- 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.