The entrance of one new member in the family brings the most pleasant gift to everyone in the family but in addition to above it also brings in lots of responsibility.  Thus, to   secure child’s future and to provide timely funds for different requirements, parents must select the investment options which secure child’s future as well as provide tax benefits to parents. PPF (Public Provident Fund) in child’s name The tax benefit is totally enjoyed by you (parent) in this investment because you get deduction u/s 80C from your income and the yield is also tax free as child’s income is clubbed with income of parent. After third year loan is also available which you can take for emergencies such as educational requirement. Deposit upto Rs. 70,000 annually can be made but there is no bar of investment timing. PPF fund on maturity can be used for business or for higher studies. When your child attain 18 years of age it is also good for tax free wealth in the hands of him. We request you to please check with the banks, some banks may not allow to open PPF account in the name of minors. Investment in ULIP (Unit Linked Insurance Policy) This will secure your child’s future in true sense as the surety of timely funds to your child is available whether you are there or not. All the ULIPS are being managed by professionals and controlled by IRDA. Premium waiver benefit of ULIP ensures that all future premiums till age of 25 years of your child would be waived in case of death plus in case of permanent disability of parent too. Your child will get the funds as per original plan even when you are not there and your child is also assured of monthly income of 1% of the sum assured in case of death or permanent disability of parent. Deduction u/s 80C on premium paid (upto Rs. 1 Lacs) is also available and the funds will be tax free in the hands of child. The return on investment is also tax free and average return is highest amongst all other tax saving options. The payment can be made monthly, quarterly or annually. The regular investment is required in this but ULIP help you in planning regular needs as well the lump sum needs for business, higher education or marriage. Zero Coupon Bond The newest investment option which will accomplish future needs of your child is ZCB (Zero Coupon Bond). ZCB is a bond issued by infrastructure capital company/fund or PSU and is notified by Central Government. These bonds usually have a maturity period of 15 years and from these bonds a fixed amount is received on maturity. No income is accrued/received before the maturity period. Invest in House Property A house is an asset that can pass on from one generation to another. The will should be drafted to ensure transfer of the house property to the right heirs. You will get tax benefit too if you purchase the house property through home Loan. Timely and efficient tax planning go long way in lowering your total taxes by employing and taking advantages of in-built provisions of tax exemptions, deductions, concessions, rebates, relief’s, allowances and other benefits granted by the tax laws so that the incidence of tax is reduced. We at Taxmantra.com have the expertise to guide you in lowering your tax outgo and thus enhancing your total take away.  We at Taxmantra.com provide full year support solving all your tax issues, in addition to filing of your return of income with excellent tax planning. Do contact us immediately, we are here to help in solving all your tax issues.