Investing for your children's future not only secures their financial well-being but also provides tax benefits. Here's how you can save taxes by making investments in your children's name:
The Sukanya Samriddhi Yojana is a government-backed savings scheme specifically designed for the girl child. Investments made in an SSY account are eligible for tax benefits under Section 80C of the Income Tax Act.
Maximum Deduction: Up to Rs. 1.5 lakh per financial year.
Opening a PPF account in your child's name allows you to claim tax deductions under Section 80C for the contributions made towards the account.
Maximum Deduction: Up to Rs. 1.5 lakh per financial year.
Investments in ELSS mutual funds made on behalf of your child qualify for tax deductions under Section 80C.
Maximum Deduction: Up to Rs. 1.5 lakh per financial year.
Investing in your children's future not only helps in their financial planning but also provides tax savings opportunities. By making strategic investments in schemes like SSY, PPF, ELSS, and education expenses, you can maximize tax benefits while securing your child's future.