Income Tax News: It is said that a husband and wife are each other’s companions. In every joy and grief, they help one another. In addition to offering each other emotional support, they can also exchange money. Certain transactions can be very advantageous if they are completed jointly by a husband and wife. You can save a significant amount of money on taxes if you and your spouse engage in joint transactions. Allow us to explain the ways in which your spouse can help you reduce your income tax.
Joint Mortgage for Home Purchase
If you’re considering purchasing a home, do so by obtaining a joint mortgage and having it registered in your names. Both of you are eligible to receive tax benefits on your home loan in this scenario. This way, the tax benefit will be doubled for you. You can each claim Rs 1.5 lakh on the principal, for a total of Rs 3 lakh under 80C. However, under Section 24, both can receive a tax benefit on interest of up to Rs 2 lakh. This implies that you may receive a total tax benefit of up to Rs 7 lakh. It will, however, also be influenced by the total amount of your house loan.
Tax Exemption on Capital Gains
Long-term investors in the stock market are eligible for a tax exemption on capital gains of up to Rs 1 lakh. If your wife is a homemaker and her income is very low in this case, you can give her some money to invest in the stock market under her name. In this way, your wife will receive tax exemption on capital gains up to Rs 1 lakh on the returns you receive on that money. In contrast, your total gain would be Rs. 2 lakh if you had invested this money yourself and had already realised a capital gain of Rs. 1 lakh. You would be required to pay tax on Rs 1 lakh in this scenario.
Educational Loan Tax Exemption
Many girls feel pressured by their families to get married, but then decide they need to finish their education. In this case, you will be exempt from paying taxes on the interest paid on any education loans you take out for your wife while she is enrolled in classes. For eight years, the interest on your education loans is exempt from taxes. This exemption is granted to you by section 80E. However, bear in mind that you should only obtain a student loan from a bank or other establishment that has government recognition.
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