Gift, loan, house rent: How your family can help in saving taxes

Provisions in the law allow your parents, spouse and siblings to maximise your tax returns

Are you looking for ways to reduce your tax liability to a minimum? Did you know that an individual can, in addition to the tax benefits she/he is entitled to, also leverage the benefits available to family members to reduce this liability? However, proceed with caution to ensure that such actions don’t violate the letter or the spirit of tax laws.

Gift to parents

You can gift money to your parents if they fall into the non-taxable or a lower tax bracket. “Gifts received from ‘specified’ relatives like parents, spouse, children, etc are not treated as income. They are fully exempt from