ECONOMICS
MONEY MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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receive an additional tax exemption because of the baby.
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need to obtain a W-2 form for the baby.
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have to file a separate income tax form for the baby.
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automatically start paying Social Security payments for the baby.
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Detailed explanation-1: -An individual can claim a deduction of up to Rs 25, 000 for the insurance of self, spouse, and dependent children. An additional/separate deduction for parents’ insurance is available to the extent of Rs 25, 000 if they are less than 60 years of age, or Rs 50, 000 if your parents are aged above 60.
Detailed explanation-2: -all gifts are charged to tax Sum of money received without consideration by an individual or HUF is chargeable to tax if the aggregate value of such sum received during the year exceeds Rs. 50, 000. aggregate value of gift received during the year and not on the basis of individual gift.
Detailed explanation-3: -As per section 56 there will be no tax liability on the gifted amount received by way of gift from relatives whether husband or the father in law or the mother in law.
Detailed explanation-4: -If your parents are younger than 60 years, the maximum permissible exemption is Rs. 25000 a year. Both of these come under Section 80D.