Parents' Health Insurance Deductions Reduce Tax Liability

Tax planning with parents can reduce taxable income through legal means. One way is to pay parents' health insurance premiums, which can be deducted up to ₹50,000 if one parent is a senior citizen. Additionally, medical expenses incurred on a senior citizen parent without health insurance can be deducted up to ₹50,000, subject to conditions. Other legal ways to reduce tax outgo include structuring genuine expenses, gifts, and investments between family members. Taxpayers should consult a tax professional to determine the best strategy for their individual situation.