Many are not aware but your wife can prove to be of great help in saving income tax. The Government of India has made a special rule about women, under which husbands can take double benefit of exemption in tax.
Here’s how you can do it.
Amid the COVID-19 pandemic, everyone is getting health insurance. However, we will tell you how health insurance can save you from the expensive treatment expenses of the hospitals as well as saving taxes. If you are under 60 years old, then you can also save up to Rs 25,000 through Health Insurance Premium. You can also get a premium for your wife and child. In this, you get exemption under section 80D, either by taking mediclaim, family floater, or critical illness insurance. At the same time, those who are above 60, will get a tax benefit of up to Rs 50,000.
A Home loan is also an easy way to save tax. In such a situation, if you make a joint home loan, then the EMI payers get the benefit of tax exemption. In this, you get a deduction of up to Rs 1.5-1.5 lakh under Section 80C. At the same time, the interest portion will get a rebate of up to 2-2 lakh rupees under section 24.
The easiest way to save tax is to buy a life insurance policy. If you take an insurance policy jointly, then you will not have to face any kind of trouble in case something happens to your wife. In a joint insurance policy, you get more benefits at a lower premium. At the same time, under Section 80C, there is also the benefit of income tax exemption.
Under Section 80C of the Income Tax Law, you can avail of deduction on the expenses of up to Rs 1.5 lakh for the education of children. This cost of children’s education can be from any university, college, school, or any of the educational institutions. Interestingly, you will be able to take this benefit of the deduction for up to two children. Yes, if you have a third child, then any other person from the husband or wife can claim a deduction at the expense of his/her studies.
Leave Travel Allowance
A taxpayer can avail leave travel allowance for two trips within four years. But if both husband and wife are taxpayers, then together they can take advantage of 4 travel allowances in 4 years. In this way, they can go on holiday 4 times instead of 2 times.