6. Invest On Your Minor Child

You can increase your income, if you make an investment in your minor child’s name, the income that you gain from that investment will be clubbed along with your personal income.

This is only allowed for up to two children.

For instance, you can keep a long term fixed deposit of up to 15, 000 that will fetch you about 10 percent as an annual return which is also tax exempted.

7. Form a Trust

If you are a parent, you will be forced in one way or the other to incur various kinds of expenses on them.

The easiest way to cut down on your tax payment is to set up a trust in your minor child's name. All you have to do is to make a permanent transfer to the trust so that you will not have to claim the money.

Once you have made investment in trust the income that you make through this will not be clubbed with your income.

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