|
As you go ahead making investments to save on income tax outgo, do spare a thought for your child. Yes, investing in a children’s plan can get you tax benefits under various sections of the I-T Act. Read on to learn more...
Why should you buy a children’s plan? Children’s plans are a great way to make special provisions for your child and help him lead a trouble-free life. The child would require lump-sum money at different stages. A children’s plan is meant for that. It pays a regular amount so that the child's future needs and dreams are fulfilled
What are various types of children’s plans?
There are two types of children’s plans — traditional and unit-linked plans. Traditional plans invest in debt instruments, giving moderate returns. Unit-linked plans have the ability to give you attractive returns since they invest across equity and debt markets in varying proportion
Will it get cancelled in case of death?
No. In case of a contingency, the sum assured in the children’s plan is paid to your child. Besides, there is an inbuilt Waiver of Premium benefit that waives all future premiums payable till maturity and gives you the maturity amount immediately
What are the tax benefits?
Yes. All premiums that you pay as premium towards the children’s plan are exempted from tax under Section 80 (C) and 10 (10D) of the current Income Tax regulations. The premiums, regular payouts and the sum assured are all exempted from tax
What are the other benefits?
Children’s plans give a specified amount at a specified period, which can be used for different purposes as education, higher studies and marriage. Death cover provides immediate relief by paying out the sum assured to the child. Maturity benefit at a specific age will come to the child, which s/he can use for future needs.....
Source :- mydigitalfc
|
