How to reduce income tax?

Most of us would think that to reduce income tax, is to contribute to SRS, Supplementary Retirement Scheme.

There is also another avenue, that is to do cash top up to parent's retirement account.

If your parent is retired and above 62, and you have been giving your parents allowance, one can actually do cash top up of up to $7000 to parent's CPF Retirement account and the parent gets a monthly draw down of $297.

If you have been giving allowance to your parents, this is one way to claim tax by doing cash top up.

You can have a joint bank account, and the monthly payout from the MSS, $297 will be credited to the account monthly and at the same time there is tax relief.