What are the income tax saving plans for parents with single income!

Hello Community Members,

If yours is a single-income household with a child, you need to be prudent in your financial plans to save tax as well as fulfill goals of your family and children.

The plans to choose from include:

  1. At least 20% of your annual income must be allocated to market-linked investment options, which offer EEE benefits. You could choose from Unit Linked Insurance Plans (ULIPs), Equity Linked Savings Schemes (ELSS), Child Plans, among others.
  2. Tax exemption of up to Rs 1.5 lakh under Section 80C
  3. Term insurance cover with a sum assured that is equal to 15 to 20 ties of your annual income.
  4. Public Provident Fund (PPF)

To add to it, children’s tuition fees can be claimed under 80C. Any interest on education loan for funding your child’s higher education is completely deductible under Section 80E. Up to Rs 1 lakh more can be saved under Section 80D.

Pension funds shouldn’t be ignored and at least 10% of annual income must be invested in National Pension Scheme and the likes.

Community Manager.