Hello everyone welcome back to the TAX DESTINATION Blog!!.
Team Tax
Destination wishes a Very Happy Women’s Day to every woman reading this post.
TAX DESTINATION
Respects You!!
We take this
special day to thank all women who helped us right from our birth. To celebrate
the same, we listed down the following investing options which you can start in
the name of your women (your spouse/your girl child) and get an Income Tax
deduction for you.
Sounds crazy
right..?
Let’s maintain the
same feeling and get into further details.
Let’s Move on!!
Deductions under Section 80C of the Income Tax Act:
You can invest in the following options in the name of your women and get a deduction of up to Rs.1.5
Lakhs per annum. Please note that the Rs.1.5 Lakh limit includes investments
made in the name of you, your spouse and your children (both male &
female).
01. Investment in Sukanya Samriddhi Yojana (SSY) (only for your girl
child):
Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl
child launched as a part of the government’s ‘Beti Bachao Beti Padhao’
campaign.
Key Highlights of this scheme
- It provides income-tax benefits under section 80C of the
Income Tax Act,1961. Further, returns earned and maturity amount are tax-exempt
in the scheme. - It is currently offering 7.6% for the quarter ending
March 31, 2022. - A Sukanya
Samriddhi Account can be opened any time after the birth of a girl child till
she turns 10, where you will have to deposit a minimum of Rs 250. You
can only open and operate one account in the name of the girl child. You can’t
open two accounts for one girl. The parents or legal guardians of a girl child
(up to 10 years old) can open this account with a notified bank or post office
in the name of the girl. Maximum two accounts can be opened for two girl
children in one family as per the scheme rules - The account can be opened with an initial deposit
of Rs 250 and thereafter, any amount in multiples of Rs 50 can be deposited,
subject to the condition that a minimum of Rs 250 will be deposited in a
financial year, but the total money deposited in an account on a single
occasion or on multiple occasions will not exceed Rs 1,50,000 in a financial
year. - Tenure of SSY is 21 years from the date of opening of the account or till the marriage of the girl after she attains the age of 18 years.
Life Insurance Premium
- You can invest in your name or in the name of your spouse and can be exempt from the payment of premium of an amount not exceeding 10% of Sum assured up to a maximum limit of 1.5 Lacs.
- In case of maturity if the annual premium paid doesn’t exceed 10% of the Sum assured then the amount received on maturity is not taxable.
- Hence you can claim exemption on maturity proceeds on investment in LIC on your behalf and on your spouse’s behalf.
Public Provident Fund
- You can open a PPF account in your name or in the name of your spouse and invest up to Rs.1.5 Lakh per annum in each account.
- By, opening a PPF account in the name of spouse, the investor will
be able to double one’s investment limit from ₹1.5 lakh to ₹3 lakh and
will enjoy income tax exemption on PPF interest earned and PPF maturity amount
in both PPF account. - Though the Limit u/s 80 C is maximum up to 1.5 Lacs, the investor can enjoy tax benefit on PPF interest earned & PPF Maturity amount in both PPF amounts.
Deductions under Section 80D of the Income Tax Act:
Health Insurance & Preventive medical check-up:
- You can take health insurance for
your family (You, Your Spouse, Your children who are dependent on you) and get
a deduction of premium paid up to Rs.25,000 per annum. - You can spend the amount for
getting a preventive health checkup of your family( You, Your Spouse, Your children who are dependent on you) and get a deduction up to Rs.5,000 per annum (this limit of Rs.5,000 is inclusive of above Rs.25,000
deduction for health insurance). - In case you or any of your family
members are senior citizens and you have incurred medical expenditure,( You, Your Spouse, Your children who are dependent on you) then you
can get a deduction for the same for up to Rs.50,000 per annum if you are not
covered by any health insurance.
Deductions under Section 80E of the Income Tax Act:
You can claim deduction on interest paid on education loan taken for pursuing higher
studies of the individual, spouse, children or your parents.
Key Highlights :
- The deduction is available for payment
of interest on education loan taken for pursuing higher studies of the
individual, spouse, children or his parents - This deduction is available only
if you have taken the loan in their name. - The deduction is available only for payment
of interest to banks, financial institutions, any approved charitable
institution. This deduction can be claimed only for 8 successive years (no deduction is available for interest paid from the 9th year).
Ta TAX Benefits on Joint ownership of Property( Ownership by you & your spouse)
Buying a house property is the dream of everyone. There are various tax benefits attached to the same if you purchased the same jointly along with your spouse.
If the property is bought jointly in the name of yours & your spouse by taking a home loan you can enjoy the following benefits:
- The property is jointly purchased and all the co-owners repay the loan, each co-owner would be able to claim the deduction of their respective share of interest paid up to Rs 2 lakh u/s 24(b) in the same financial year.
- Both spouse & individual can be able to claim the deduction of their respective share of principal paid up to Rs 1.5 lakh u/s 80 C in the same financial year.
- Both spouse & individual can be able to claim an additional deduction of interest up to a maximum of 1.5 lacs u/s 80EEA
So Friends, here are all the TAX Benefits that one can get by investing in the name of your spouse & girlchild
Thanks & Regards
CA. Nani Balu
CA. Pavan Kalyan
CA. Swathi
Kriyasha
