top of page

Top Tax Benefits parents can take in India for their Children !!

Ram lal ji : Krishna Lal ji, You Know how costly it is to now a days to up bring a child . Can parents get any tax benefits in India for taking care of there children,

Krishna Lal ji ( Tax Planner ): Ram lal ji, Yes Yes in India every parent who spends money from their income on the education & development of their children can take tax benefits but but alike you they are unaware of the taxation benefits due to which they are not able to claim the same at the time of filling their income tax returns.

Ram lal ji : Krishna Lal ji, Is it ! I an not aware of any such benefits . Can you let me know the benefits available to parents as deductions in Income Tax for expenses on their children?

Krishna Lal ji ( Tax Planner ) : Ram lal ji, Yes why not . I am away there to guide you. Alike you all the Parents make a lot of expenditure on their child’s education, there is a provision available under Income tax act which provides for-

1. Payment of tuition fees paid by parents for their children is allowed as deduction under section 80C. The Deduction is available to the extent of Rs 1,50,000/-.

2. Exemption for salaried taxpayer if they get perquisite from their employer for education of Rs 100 per month per child (upto 2 children) Maximum benefit Rs 2400/- can be taken.

3. Exemption for Hostel Allowance received by Salaried taxpayer of Rs 300 per month per child (upto 2 child) Maximum benefit Rs 7200/- can be taken.

4. Interest on Education loan taken for higher studies can be claimed under Section 80E.

Ram lal ji : Krishna Lalji, are there any special benefits for girl child?

Krishna Lalji ( Tax Planner ) : Ram lal ji, Government had launched “Sukanya Samruddhi Scheme”

for girl child, the scheme says that deposits can be made in the name of girl child by her parents. Deposits can be as low as Rs 250 per month to maximum of Rs 1,50,000 per year.

Following are the benefits which parents can enjoy-

1. Deposits made under the scheme are eligible for deduction under Section 80C of the Income Tax Act, 1961

2. Interest earned from the deposits are exempt from tax.

3. There will no tax on maturity or withdrawal of funds from the scheme.

Ram lal ji : Krishna Lalji, what will happen if a child is minor and he earns income?

Krishna Lalji ( Tax Planner ) : Ram lal ji, Income Tax provides following rules related to Minors earning & Income:-

1. If a minor has earned income, it will clubbed in the income of the child’s parents whose income is higher. Also, such parent can claim exemption of Rs 1500 or income of minor whichever is less.

2. However, if the minor child has earned income from manual work or any activity involving application of his/her skill, knowledge, talent, experience, etc, then the income shall not be clubbed in the income of his/her parents.

For Example- A Minor has earned Rs 10 Lakh as a winning prize in a singing competition, then that income shall be taxed in hands of that Minor and will not be clubbed in parent’s income.

Ram lal ji : Krishna Lal ji, what lesson the taxpayer should take from this?

Krishna Lal ji ( Tax Planner ) : Ram lal ji, Any parent in the world always want their child to excel in any activity their child wants to go, and parents spend their earning in making their children’s dream come true. Education is the right of every child but there are few who are lucky to get it and those who are lucky to have should take benefits of the deductions that are available with it.

If you are interest in getting your tax planning done in such a way that you are able to take the benefits of all the available tax benefits to you then please book a consultation today with Shoshaku service so that we can advice you & save your hard earned money.

67 views0 comments

Recent Posts

See All

Designed to Meet Every Client’s Needs

Shoshaku services has been providing superior accounting services since 2020. Thanks to our years of experience and consistent professionalism, we have built a reputation as an unparalleled Accountant. Browse our solutions below.

Image by Sebastian Herrmann

Financial planning

Executed with a Personal Touch

Financial planning is one of our most highly requested solutions. We take the time to listen to each client and tailor the service to their needs. In our introductory consultation, we will walk you through all of the benefits involved.

Statistic calculating

Accounting services

We Understand Your Specific Needs

When you choose our team to handle all your accounting, n commercial tax matter, you receive more than our expertise and insight. You receive professional partners who work tirelessly to minimize your stress and ensure to provide financial information just in time. 

Accountant at Work

Individual Income Tax Preparation

An Essential Financial Solution

The Shoshaku services team is dedicated to staying up-to-date on all regulatory and legislative developments, both locally and nationally. When you hire us for Individual Income Tax Preparation, you can count on receiving accurate guidance.

Image by Dose Media

Set up new business

We Understand Your Specific Needs

Our consultancy offers a comprehensive service to help you set up your new business. Our team of experts will guide you through the process from start to finish, including assistance with paperwork and legal requirements. We will also provide you with the necessary resources to ensure a successful launch.

Image by Surface

GST Services

We Understand Your Specific Needs

Our GST Services provide businesses with comprehensive advice and support for all their GST needs. We offer expertise in GST registration, filing, and compliance to ensure that our clients stay up-to-date with the latest GST regulations. Our team of experienced professionals offers tailored solutions to help businesses maximize their GST savings.

Image by Surface
Digital  Marketing Services

We Understand Your Specific Needs

Our Digital Marketing service offers comprehensive support for businesses looking to get the most out of their online presence. We provide expert advice and tailored strategies to help you reach and engage with your target audience, driving leads and sales. With proven results and years of experience, our team can help you make the most of your digital marketing efforts.

bottom of page