Let us see few tax saving options which are not very popular and many of us do not take full benefits of these options. These options are either hidden in larger tax saving options or on the clauses which are not very well advertised. The first one is the tax benefit we get on our children's school and education fees. This option is hidden in section 80 C which we all know gives us 1.5 Lakh Rupees benefit each year on our various tax saving investments such as these, we get these benefits for the fees we have paid for any full time education in India including nursery for our children. For example we have paid rupees 50,000 as college fees for our child in 2016-2017 financial year, then out of rupees 1.5 lakh deduction which we get in section 80 C, Rupees 50,000 can be reduced as college fees expense. So we are left with rupees one lakh tax saving investments which is needed which can be done in any of these and other options.
Please remember only tuition fees can be claimed under tax benefit and not these kind of expenses on education. Now we will discuss two hidden tax saving options under section 80 D where we get rupees 25 thousand tax deduction on health insurance expenses by you and your family which includes your spouse and dependent children apart from expenses from health insurance. You also get benefit for your expenses on preventive health check-up of up to five thousand rupees under this section. You can get this benefit if your family's health insurance expense is less than rupees 25,000 per year and have gone through a preventive health checkup in this year. Explaining this with an example, suppose you have taken a family floater plan with premium of 22,000 per year and also you have spend rupees five thousand on health check-up of your wife, then you can take the benefit of full limit of rupees 25,000 under this section. Also many of us do not note there is a separate benefit for health insurance expenses on our parents which gives us extra rupees 25,000 a year tax reduction which means you can get up to rupees 50,000 tax deduction on healthcare expenses for your family which includes, your spouse, your dependent children and dependent parents.
You also get rupees 5,000 extra tax deduction if your parents are senior citizen which makes overall tax deduction limit under section 80 D to be rupees 55,000. Now we are going to discuss about the section 80 G which many of us are unaware about, this section is for those individuals who are salaried but do not get HRA or for those self-employed professionals who do not get benefit of HRA under this section. These individuals can claim a deduction for rent paid to the extend of rupees 5,000 per month. Just remember it is subject to few conditions such as neither you nor spouse should own a house at the place of employment and also you should not self occupy your house at any at any other place. Now let us discuss about fourth lesser known tax saving option that is paying rent to your parents if you are living in your parents house. If you are living in the property in the name of one of your parent then you should pay rent to your parents and there is two benefits of it.
The first is obviously you will get HRA benefit for this and you can save lot of tax.
Secondly your parents can claim up to thirty percent of tax deduction on this rental income for maintenance and repair purpose. You can read Sell Your Annuities for more tax saving and financial planning tips.