Income Tax News: Attention, taxpayers! Did you know that your wife can use smart financial practices to save lakhs of rupees in taxes? There are several methods to optimise your tax savings, ranging from investments and house loans to health insurance and education loans. This article will discuss seven practical ways to lower your partner’s tax burden.
The process for filing Income Tax Returns (ITR) has now officially ended. It is important to note that the last date for filing ITR was July 31, 2024. However, taxpayers who missed the deadline can still file their ITR, but they will face a penalty from the department. On July 23, 2024, Finance Minister Nirmala Sitharaman presented the Union Budget. Unfortunately, taxpayers did not receive any significant relief in this budget either. However, under the New Tax Regime, the standard deduction has been increased from ₹50,000 to ₹75,000. A common question among taxpayers is how they can save on taxes. In this article, we will share 7 ways through which taxpayers can save taxes (Income Tax News).
7 Ways to Save Taxes:
Tax Exemption under Section 80C of the Income Tax Act:
Under Section 80C of the Income Tax Act, taxpayers can save up to ₹1.5 lakh in taxes. By investing in schemes like PPF, NSC, SSY, and others under their spouse’s name, taxpayers can avail of tax exemptions up to ₹1.5 lakh.
Tax Exemption on Health Insurance:
Taxpayers can claim deductions under Section 80D if they purchase health insurance under their spouse’s name. They can claim tax deductions of up to ₹25,000 under this section.
Tax Exemption on Home Loan:
Taxpayers can also claim tax exemptions on home loan interest payments of up to ₹2 lakh.
National Pension System (NPS):
By investing up to ₹50,000 annually in the National Pension System (NPS) under Section 80CCD(1B), taxpayers can avail of tax deductions of up to ₹50,000.
Education Loan in Spouse’s Name:
If you take an education loan in your spouse’s name, you can claim tax deductions under Section 80E of the Income Tax Act for up to 8 years.
Joint Home Loan for Tax Exemptions:
Couples who take a joint home loan can avail of tax benefits provided by the Income Tax Department.
Investment in the Share Market:
Long-term investments in the share market offer tax exemptions on capital gains of up to ₹1 lakh. If your spouse earns less or is a housewife, you can invest in the share market under their name.
Option to Choose Between Old and New Tax Regime
It is worth noting that the central government has provided taxpayers with two options: the Old Tax Regime and the New Tax Regime. Both regimes have their own advantages, and taxpayers can choose whichever one suits them best.
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