Save tax by investing in your kids name

PPF, specific mutual funds, ulips, and standard insurance policies are all eligible for tax benefits under Section 80C, so you can invest in them in your child's name. The income, meanwhile, will be combined with yours and taxed at the appropriate rates. PPFs, for example, are tax-free investments. If the gain in equities mutual funds is less than Rs 1 lakh per year, there is no tax.
Tax benefit under: Section 80C (PPF, mutual funds, ulips)
Savings: Up to Rs 1.5 lakh (u/s 80C) + income from investments

If you register an account, Rs 1,500 of interest earned per child for two children will be tax-free. In fact, any income will be eligible for a Rs 1,500 annual exemption.
Tax benefit under: Section 10(32)
Savings: Rs 1,500 per child

If your Section 80C deduction limit hasn't been reached, you can claim the tuition fees paid for up to two children per year. If you are a salaried employee, you can additionally claim a children's education allowance of Rs 100 per month per child (up to two children) and a hostel spending allowance of Rs 300 per month per child.
Tax benefit under: Section 80C, Section 10
Savings: Up to Rs 7,200 a year (u/s 10) + Rs 1.5 lakh (u/s 80C) Rs 2,400 

If you pay the premiums for your spouse and children's health insurance, you will be eligible for a tax break. This also includes any preventive health examinations.
Tax benefit under: Section 80C, Section 10
Savings: Up to Rs 7,200 a year (u/s 10) + Rs 1.5 lakh (u/s 80C) Rs 2,400 

If you have a child or relative (spouse, children, parents, or siblings) who is disabled or has an illness that demands a lot of medical bills or maintenance, you can claim a tax break on the costs.
Tax benefit under: Section 80DDB
Savings: You can claim a deduction of Rs 40,000, or actual expenses, whichever is smaller, if the dependent is under 60 years old and suffers from a specified ailment. You can claim Rs 1 lakh, or actual expenses, whichever is less, if the person is 60 years or older. You can claim a maximum deduction of Rs 75,000 if your impairment is between 40% and 80%. The possible deduction is Rs 1.25 lakh if the disability is greater than 80%.

If your kid is 18 or older, he will be responsible for paying tax on whatever income he makes; clubbing rules will not apply, and his earnings will not be added to yours. If someone earns a tax-free income and you give him money to invest in tax-free instruments, the income he earns will be tax-free.
Tax benefit under: NA
Savings: Depends on the instrument in which the money is invested.

If you have applied out an education loan for your child, you will be eligible for a tax benefit on interest repayment for up to 8 years, beginning with the year the interest is due. Remember that the loan must come from a government-approved financial organisation, such as a bank or another banking institution.
Tax benefit under: Section 80E
Savings: If, for instance, your gross taxable income after all deductions is Rs 7 lakh and you repay Rs 2 lakh as interest component of the loan, your taxable income will amount to Rs 5 lakh.


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