Some of the deductions claim for investments made in children's names. Most of these deductions fall within the investment limit of Rs 1 lakh, under Section 80C:-
Tuition Fees Paid:
In respect of school fees a parent can claim a deduction of tuition fee paid to any university, college, school or any other educational institution. The deduction on payments made towards tuition fee can be claimed up to Rs 1 lakh together with deduction in respect of insurance, provident fund and pension. It can only be claimed in respect of two dependent children and for fees to an educational institution within India and for tuition fee only.
Interest on Education Loan:
The interest paid (not the principal amount) on an education loan is fully deductible from taxable income under Section 80E up to eight continuous years, starting from the year in which the interest is first paid. This can be claimed by either the child (if the loan is in their name) or by the parent.
Premium paid for health insurance:
Parents can claim a deduction up to a limit of Rs 15,000 on premium paid towards health insurance policies taken for their children.