New Delhi11 hours ago
The process of filing income tax for 2020-21 has started. In such a situation, if you are also planning to file income tax return, then you should have complete and correct information about which expenses or investments you can take advantage of tax exemption. You can also claim tax exemption on the expenses incurred on your child including tuition fees or medical expenses.
Today we are telling you about such expenses made on children, on which you can take a discount.
Relief on tuition fees of two children
You can avail tax benefit of up to Rs 1.5 lakh 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. The condition for this is that the fee should be paid to a university, college, school or other educational institution located in India. Tax relief is available only for full time education. Private tuition, coaching classes or any part time courses are not covered under the tax relief.
You can take benefit of section 80E on education loan
You can claim tax deduction under section 80E for education loan taken for your children. Education loan can be taken from the bank for the expenses of higher education of the child.
Tax exemption can also be taken on the cost of treatment
Under section 80DDB, income tax deduction is available on the amount spent for the treatment of critical and prolonged illness of one of his dependents. An income tax payer can claim deduction for the amount spent on the medical treatment of his parents, children, dependent siblings and wife. These include diseases like cancer, hemophilia, thalassemia and AIDS etc. For the child, this deduction is 40 thousand rupees. For this a medical certificate is necessary.
You can also take advantage of discount on premium paid for insurance
You can save tax even if you pay health insurance premiums for your children. In this, deduction of up to 25 thousand rupees can be taken under section 80D. Apart from this, you can avail tax exemption under section 80C of the Income Tax Act on the premium paid for a term life insurance plan. Under 80C, tax benefits can be availed up to Rs 1.5 lakh.
Return for the financial year 2020-21 is to be filed by 30 September
Income tax return for the financial year 2020-21 is to be filed by 30 September. You will not have to pay any additional charges for filing income tax till this date.