How a 14-Year-Old Helped His Parents Save Taxes - Aarav’s KiddoFin Learning -Union Budget 2025

A Smart Kid’s Guide to Helping Parents Save on Taxes

Scene: A dinner table conversation between 14-year-old Aarav, a 9th grader, and his parents about saving income tax using family benefits. Aarav just attended a KiddoFin class in school and is excited to share what he learned.

Aarav’s Exciting KiddoFin Lesson

Aarav: "Mom, Dad! Did you know you can save a lot of money on taxes just because you have me and my little brother? We learned all about it in our KiddoFin class today! Our teacher explained how families can legally reduce their tax burden by making smart financial choices."

Dad: "Really? That sounds interesting. Tell us how!"

Aarav: "Okay, let’s start with New vs. Old Tax Regime. In the new tax regime, if your total income—including salary, dividends, and interest—is up to ?12 lakh, you don’t pay any tax because of the rebate under Section 87A. Plus, the standard deduction has increased to ?75,000. But if you choose the old regime, you can claim various deductions.

Step 1: Choosing the Right Tax Regime

Mom: "That’s great! But we already use 80C deductions under the old regime. What else can we do?"

Step 2: Tax-Saving Options for Parents with Minor Children

Step 3: Choosing the Right Strategy

• If you want deductions (80C, 80D, HRA, etc.), stick to the Old Regime.
• If you prefer lower tax rates and don’t have many deductions, go with the New Regime.
• Remember, once you opt for the New Regime, you can’t switch back
• Mom: "Aarav, you should become a financial advisor!"

Aarav: "No Mom, I want to become an engineer! But I’ll still be the financial advisor for our family.""

Aarav: "Haha, maybe one day! But for now, let’s make sure we use these tax-saving tricks to get the most out of our income! Our KiddoFin teacher said that being financially smart from a young age will help us build a strong future."

Tax planning is an essential part of financial management. By leveraging these deductions and exemptions, parents can legally reduce their taxable income and maximize savings. With the latest Budget 2025 updates, families have even more opportunities to optimize their tax strategy and plan a better future.

Ensure that you plan your investments and file your taxes on time to take full advantage of these benefits