How working couple can save tax together | Fusion - WeRIndia

How working couple can save tax together

How working couple can save tax together

India has a lot of working couples who try their best to save money. For those couples, here are some intelligent ways to save tax together.

Shift to lower income earning instruments

Fixed income earning instruments should be shifted to lower income earning partner. The interest on fixed interest bearing instruments is taxable. This means, you need to be smart in investing. It is smart to shift the income from interests to the partner who earns lowest to fall under lower tax categories.

Joint Home loans

Taking a joint Home loan can be useful to use maximum tax breaks allowed. Doing so will make sure that both partners can avail tax benefits.

Split HRA

Couple who are in a rented home can split HRA for the rent. Doing so is helpful as both of them can claim HRA benefits under SEC 80C of the Income Tax Act.

Use LTA well

Tax can exempted to the extent of the travel cost under LTA. The rules of tax currently only provide exemption for two journeys performed in a block of four calendar years. Couples can claim LTA benefits every alternate year which ensures they have tax benefits from LTA every year between them.

Image Credit: / 3353 Images (Free for commercial use)

Image Reference:

Leave a Reply

Your email address will not be published. Required fields are marked *