Trim your tax bill by doing this: Gift money, pay rent to your parents

In addition to the tax deductions that are available to you directly, you can also leverage your family ties to reduce your tax liability further. Parents, for instance, can play a crucial role in this process, as specific provisions within tax laws allow this. It’s imperative, however, to proceed with caution so that you comply with both the letter and the spirit of tax laws.

Gift to parents

An effective tax-saving strategy involves transferring funds to your parents, especially if they are in a non-taxable or lower tax bracket. Says Soayib Qureshi, partner, PSL Advocates and Solicitors: “Gifts received by