7 Tax Free Incomes Which Can Make You Rich
4. Take Help of an Adult Child
Often teen agers are considered as good for nothing, but while it comes to save your tax they can prove to be a very good option. After a person turns 18 they are considered as a separate individual and are no more considered to be dependent on their parents. You can gift money to your child who is 18 or just will be within few months and invest on their name. This is very much legal and will also help you save your tax. The rule is that if an individual turns 18 anytime during a financial year (even on 31 March), he gets the benefit for the entire year. Even those with children aged 16-17 years can use this strategy. Just invest in a 500-700 day FMP. One can also escape form ancestral property tax provisions by investing on the name of their adult children.
5. Parents Can Help Too
They have helped you through your entire life and now your parents can also help to save your income tax. If you come under the highest 30 percent tax slab but your parents had a low earning profile, you can opt to invest on their name and save tax. There are many savings schemes and programmes for senior citizens and you can easily go for any one of them by investing on your parent’s name. The Senior Citizens' Savings Scheme offers an attractive 9.5% return.
