Your spouse can save your income tax up to Rs 7 lakh with these 3 strategies

While the relationship between husband and wife is primarily emotional, it can also be financially beneficial. Engaging in certain joint financial transactions can yield substantial tax savings. By following three key strategies, you and your spouse can save up to Rs 7 lakh in income tax.

1. Education loan in your spouse' name

If your spouse wishes to pursue further studies, taking an education loan in their name can be highly advantageous. You can claim tax exemption on the interest paid on this loan for up to eight years, as per Section 80E of the Income Tax Act. Ensure that the loan is taken from a recognised bank or government institution.

2. Investing in the stock market

By making long-term investments in the stock market under the name of your spouse, you can benefit from tax exemptions on capital gains up to Rs 1 lakh. This is particularly effective if your spouse' income is low or if they don't earn. Transferring some money to their for investment purposes can maximise your family’s overall tax savings.

3. Joint home loan

Couples often plan to buy a house together. By taking a joint home loan and registering the property in both names, you can double the tax benefits. Both partners can claim up to Rs 1.5 lakh each on the principal amount under Section 80C, totaling Rs 3 lakh. Additionally, under Section 24, both can claim up to Rs 2 lakh each on the interest paid, bringing the total potential tax benefit to Rs 7 lakh. The actual savings will depend on the amount of the home loan.

By strategically managing joint financial transactions, couples can not only achieve their financial goals but also significantly reduce their tax burden.