New Delhi: As income tax scrutiny tightens and living costs rise, Indian taxpayers are turning to an unexpected tax-saving partner—their parents. Financial experts say family-based tax planning is fast becoming a trending and fully legal strategy in India.
One of the biggest tax savers? Paying rent to parents and claiming House Rent Allowance (HRA), while parents declare the rental income at a lower tax slab. Another popular move is investing in parents’ names, especially for retirees, where interest income is taxed less.
Taxpayers also get extra deductions for health insurance premiums and medical expenses paid for parents—up to ₹50,000 for senior citizens—making it one of the most powerful yet underused tax benefits.
Experts caution that proper documentation and transparency are crucial, as fake claims can invite penalties. Still, when done correctly, involving parents in tax planning can legally save thousands of rupees every year.
With smarter compliance and rising awareness, using family tax benefits is no longer a loophole—it’s a financial strategy Indians are openly embracing.