Before filing an income tax return, it must be known that on which expenses or investments you can take advantage of tax exemption.
Income tax return for the financial year 2020-21 can be filed till 30 September. If you file income tax by this date, you will not have to pay any additional charges. Before filing an income tax return, it must be known that on which expenses or investments you can take advantage of tax exemption. Today we are going to tell you that the benefit of tax exemption can also be taken on the investment made on children.
Tuition fee relief
- Tax benefit up to Rs 5 lakh can be availed under section 80C on school/college tuition fees for two children.
- If you have more than two children, you can claim this for any two children.
- However, there is a condition with this that this claim can be made only when the fees are paid to the university, college, school, or other educational institution located in India.
- Keep in mind that tax relief is available only for full-time education.
- Private tuition, coaching classes, or any part-time courses do not come under the ambit of tax relief.
Education loan
You can claim tax deduction under section 80E on education loans taken for children.
Health insurance
A deduction of up to Rs 25,000 can be taken under section 80D for paying health insurance premiums for your children.
Term insurance
- The premium paid for a term life insurance plan offers the benefit of tax exemption under section 80C of the Income Tax Act.
- There is no need to take a new plan every year. Annual renewal premium in a policy can also get tax exemption under section 80C.
Tax exemption can also be taken on the cost of treatment
- Under section 80DDB, an income tax deduction is available on the amount spent for the treatment of serious and prolonged illness of one of his dependents.
- The income taxpayer can claim a deduction for the amount spent on the medical treatment of his parents, children, dependent siblings, and wife.
- For the child, this deduction is 40 thousand rupees. For this a medical certificate is necessary.