Discover effective tax saving tips for married couples in India. Learn how joint transactions can lead to significant income tax savings, potentially up to Rs 7 lakh.
In a married relationship, a husband and wife can support each other financially. This not only helps in increasing overall wealth, but also allows you to get income tax exemption up to Rs 7 lakh.
Many married couples agree on education after marriage and getting an education loan will be helpful. Tax exemption will be available on the installment for that loan. Tax exemption can be availed for 8 years on the interest on education loan. This exemption is available under Section 80E of the Income Tax. When taking a loan in the wife's name, it can be taken as a student loan. It should also be obtained from a government bank, government authorized bank or government institution.
Long term investment in stock market provides tax exemption on capital gains up to Rs 1 lakh. In such a situation, if your wife's income is very low or if she is a housewife, you can invest some money in the stock market in her name. In this way, the wife will get tax exemption on capital gains up to Rs 1 lakh on the income from the money invested in the stock market. If there is already a capital gain of Rs 1 lakh, the capital gain received in the wife's name will be Rs 1 lakh, making a total of Rs 2 lakh. In such a situation, you have to pay tax only on Rs 1 lakh.
A husband and wife can save tax by taking a joint home loan to build their own house. If the purchased house is registered in the name of both, both can avail tax benefits on home loan. Through this, double benefit will be available in tax. In the principal amount, both can save Rs 1.5 lakh each, i.e. a total of Rs 3 lakh. This tax benefit is given under Section 80C. Apart from this, both can get tax benefit of Rs 2 lakh each on interest under Section 24. In total, tax benefits up to Rs 7 lakh can be availed. However, it depends on the amount of home loan.