Taxable money of any individual in India depends on various factors such as residential status, nature of income, marital status, etc. Even if you get married on the last day of the financial year, you will be considered as married, and accordingly, the tax rules will apply for the entire year.

In India, there is no clause where couples can jointly file their taxes. However, couples can save a considerable amount of income by separately filing their returns. In addition, there are some benefits that allow you to increase tax savings through your spouse. Let us understand how:

  • Indian income tax act allows you to claim deduction on education expenses incurred for two of your children. The deduction can be claimed for college, school, or university expenses. However, this will not be applicable for more than two of your children. In such a case, your spouse can claim a deduction for your third and fourth child.
  • Section 80 D of Indian Income tax act allows an individual to claim tax benefits for medical insurance coverage. However, there are certain limits to the amount of money that can be claimed as a tax deduction. In case the husband and wife both are working, maximum benefits can be claimed under section 80 D.
  • Section 80 C of Indian income tax act allows tax deduction on borrowed money i.e., home loan. The benefits are limited if claimed by a single person. However, if both husband and wife are joint owners of the house and co-borrowers of the loan amount, they can claim maximum benefits under this section.
  • Tax benefits in respect of house properties can be claimed by a couple. At present, an individual is allowed to have a single property as self-occupied. And, if he owns an additional property, the owner will have to offer rent as per the taxation laws even if no rent is received from that property. In such a case, the additional property can be registered under the spouse’s name to save additional taxes.
Existing laws can be used to the maximum in order to claim benefits as a married couple. Tax burden can be reduced if you transfer some money in your spouse’s account as a Token of Appreciation. No tax amount is charged on the Token of Appreciation. To better understand your tax liabilities and how you can claim maximum benefits as a couple, it is best to consult a professional tax expert.

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DISCLAIMER

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.



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