Shreyaa Kapoor Instagram – If your parents are in a lower tax bracket than you and / or are retired you can help them out AND save on taxes! 🙌🏼
Here is how:
You can invest for your parents in a range of options, such as the Senior Citizens’ Saving Scheme, post office or other tax-saving schemes and even a common favourite, bank FDs. 🫶🏼
Senior citizens are allowed tax exemption of up to Rs 50,000 on interest income from saving or FDs in any bank- post office or cooperative. Even if interest exceeds exemption limit, their tax liability will still be much lower than yours. 🙌🏼
Note that the tax-exempt limit for citizens below 60 years is Rs 2.5 lakh but for those above 60, it is Rs 3 lakh and for seniors above 80 years, it is Rs 5 lakh.🙏🏼
However, this rule can not be used for tax evasion. There are guidelines that state that if the FD interest money is returned back by the parent then the FD interest might get clubbed with the child’s income. 🌱
This is a great way to help out your senior citizen parents while saving taxes!🫶🏼
Other tax saving hacks shared in previous reels, do check them out!🙏🏼
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[tax saving, taxes, personal finance, finance hacks, income tax saving, money saving, Fixed deposit, tax hacks] | Posted on 02/May/2024 20:00:10
