Your Child Can Provide You Relieve from Tax

Giving best to our children is our utmost priority in spite of the sky-rocketing prices and growing expenses. Investing in their future is one of the major concerns for every parent. But child plan investment can give you Income Tax benefits along with a bright future to your children. There are seven advantages that you can relish on many expenses and investments made on your child’s name.

Read more
Best Child Saving Plans
  • Insurer pays your premiums in your absence

  • Invest ₹10k/month and your child gets ₹1 Cr tax free*

  • Save upto ₹46,800 in tax under Section 80(C)

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr Tax Free*

View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp

Interest on Education Loan:  Pre-planning for children’s higher studies has become very essential as getting education is becoming more and more expensive. Taking up a loan is the option that most of us go for. But it leaves us with a burden of repayments. While coping up with repayments, one can partially gain from this investment as the interest portion on education loan is completely tax deductible under section 80 E.  The loan taken up must be for a full-time graduate course.

Health Insurance Premium: The premium paid for health insurance that we take for our children can be claimed as a deduction, up to Rs 15000 under section 80D in a year.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Payment of Tuition fees: The tuition fee that most schools, colleges and universities have in India can be deducted under section 80 C up to R1 lakh in a year. Restricted to two dependent children, the amount of deduction should pertain to the actual paid tuition fee. Each parent can claim the benefit for up to two children as husband and wife have a separate limit.

Expenses on treatment of disabilities and certain ailments: If any parent has spent any amount for the treatment of specific disabilities and illnesses of his child then he can claim deduction from his income under two sections – 80DD and 80DDB. According to section 80DD, the expenses incurred towards medical treatment of dependent children suffering from a disability are entitled for deduction.  For a normal disability, the limit of deduction is Rs 50,000 (impairment of at least 40%). For severe disability, the limit is Rs 1lakh (impairment of 80% and above).

According to section 80 DDB, the expenses incurred towards treatment of specified illnesses for children can be deducted up to Rs 40,000.

Deduction of allowances: A mass of allowances paid for expenses aiming the children is specified by the tax law which are allowed by an employer as an income tax deduction of the employee. It includes hostel allowance of Rs 300 per month per child, up to a maximum of two children. The second one is an education allowance in which Rs 100 per month per child is exempted from income up to a maximum of two children. Third one is medical expenses incurred for dependent children. This expense is allowed as a deduction of up to Rs 15,000 per year on showing medical bills.

Minor child’s income: The income earned from the investments made in our child’s name will be clubbed with your income. However, a claim up to Rs 1,500 as a deduction on this income can be made if the investment anywhere in a minor child's name generates an income. For example, investment of up to Rs 15,000 in bank FDs offer an annual return of 10% and is exempted from tax.

Formation of a trust: Setting up a trust in a minor child's name can save tax. You just need to make an irreversible transfer to the trust so that the money will not be claimed. The income made through the investments will be allowed for tax deductible. However, the trust has to pay tax on this income but if the income is clubbed then the total tax liability will be lower.

Child Plan1
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Child Plan3
Child Plan4

Nothing is more important than securing your child's future

  • Life Cover paid to family to meet immediate expense
  • Future premiums are paid by the Insurance Company

Child plans articles

Recent Articles
Popular Articles
Bharti AXA Life Shining Stars Calculator - Child Plan Calculator

05 Aug 2022

This child plan by Bharti AXA is designed to help parents save...
Read more
What is the Deferment Period Under a Child Plan?

04 Aug 2022

A child insurance plan is one of the most recommended ways to...
Read more
How to Choose An Insurance Plan for Child?

04 Aug 2022

The biggest aim of any parent is to provide their child with a...
Read more
LIC Children's Deferred Endowment Assurance Plan

04 Aug 2022

The plan is no longer offered by LIC. The company introduced the...
Read more
Which Companies Offer 4 Child Benefits?

04 Aug 2022

If you are a parent, you are probably looking for a complete...
Read more
Best Child Investment Plans to Invest in 2022
Planning for the child’s secured future is not an easy task. Most of the people try to create a strong financial...
Read more
Prime Minister Schemes For Boy Child
Like the Prime Minister’s Sukanya Samriddhi Yojana savings scheme for a girl child, there are several...
Read more
Best Investment Plans for Girl Child in India
The right kind of investment of your hard-earned money is necessary, but when it comes to your child, making...
Read more
Best Child Insurance Plans
A child insurance plan is a combination of savings and insurance, which help the individuals to plan for the...
Read more
Post Office Child Plans
Individuals can open post office savings account for their children and earn interest at a rate of 4% to nearly...
Read more

Download the Policybazaar app
to manage all your insurance needs.