“Happy is the man who finds a true friend, and far happier is he who finds that true friend in his wife.” Yes, being married has a lot of benefits. You have a companion to share in your joys and sorrows. And if you are the money minded type….Your spouse can save you tax. What…. Spouse can save tax? How? Your dream home is waiting for you. All you need is a home loan….and you are a proud owner of your own home. Now you get tax benefits, when you avail a home loan. You get tax benefits under Section 80 C, Section 24 and Section 80 EE. You are newly married and your spouse holds a good job.
Congratulations on your marriage…..Now, let me give you some good news. You get double the tax benefits on a home loan, if you are married. Want to learn how to get income tax benefits on being married. Just read on.IndianMoney.com is India’s Largest Financial Education company educating over 14000 people every day. Just leave a missed call on IndianMoney.com financial education helpline 02261816111 or just post a request on IndianMoney.com website.
You have chosen your dream home in Bengaluru. All you need to do is avail a home loan. Why not avail a joint home loan from a reputed bank? What is this joint home loan? You and working spouse can avail a home loan together (home loan in both your names), for a property you choose, called a joint home loan. You have the 3 in 1 benefit:
You avail a joint home loan and repay the borrowed amount in EMI’s. The EMI’s are divided into 2 parts.
EMI (Home Loan) = EMI (Principal) + EMI (Interest).
If you are buying your first home, you can save INR 4 Lakhs a year through your joint home loan, under Section 80 C, Section 24 and Section 80 EE. This amount is deducted from your taxable salary and you are taxed as per the income tax bracket, you fall under. Your working spouse can also save INR 4 Lakhs a year, on the same home loan (it’s a joint home loan), under Section 80 C, Section 24 and Section 80 EE. This amount is deducted from her taxable salary and she is taxed as per the income tax bracket, she falls under.You and spouse save a combined INR 8 Lakhs a year, on your taxable salaries, by availing a joint home loan.
You get tax deductions under Section 80 C, up to INR 1.5 Lakhs a year, if you invest in certain financial instruments. What if you exhaust your Section 80 C limit? If your spouse is not working, just gift her some money.
Gifts between certain relatives, which include spouse, are not taxed.
What if your spouse invests this money? The income she earns from this investment, is added to your taxable income and you are taxed, as per the income tax slab you fall under. You have Section 64, which contains the clubbing provision. If you earn an income from an investment made, or assets purchased in the name of your wife (certain close relatives), it is clubbed with your income (income of the person making the investment) and you have to pay tax on this income.
So how can you escape paying tax on this money? Simply ask your spouse, to invest the gifted money in a tax free instrument, such as PPF or ELSS. You can even consider an investment in equity mutual funds and shares. The interest income earned from PPF, returns from ELSS after 3 years, or the long term capital gains from equity mutual funds and shares, are not taxed. Your spouse can now reinvest this money, as her income. You no longer have to pay any tax on this money.
“Marriage is a commitment for life. It is a permanent, lifelong relationship.” It also saves you tax. So go right ahead and get married and along with the joys of life, save on taxes too.
Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.