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October 2, 2022

Itax Software

Income Tax Software

How to Save Tax through your family, with Automated Master of Form 16 Part B with 12 BA for Financial Year 2014-15

Save Tax through your Spouse

Starting the tax planning with your wife is a good idea not because it saves you tax but woman always loves gifts. You can gift any amount to your wife with no restrictions as wife comes under the definition relative but the taxman is not foolish. The income earned from the amount given as gift to your wife will be clubbed with your income under section 64 and thus does not give you any tax benefit.
So how can you save tax? Simply invest in the tax-free instruments u/s 80C in your wife’s name such as Public Provident Fund (PPF) and Equity Linked Savings Scheme (ELSS).
Click to download Master of Form 16 Part B for the Financial Year 2014-15 [ This Excel Utility can prepare at a time 50 employees Form 16 Part B]

Save Tax through Parents

Apart from the health insurance policy, parents can also help you to save some extra bucks from your tax liability.
The best way is to pay them the rent and claim HRA but you should be living with them and your parents shall be the owner of the house. Your parents should also need to file an ITR showing the rental income. It would be ice on the cake if your parents co-owned the house, you can split the rental amount and both of them can separately show the rental income.
The other way is to lend some portion of your money to your parent as well as your parents-in-laws which they could invest and the return would be taxable in their hands. So at one end they are giving interest to you and on the other end they are earning interest. This allows you to lighten your tax burden.

Save Tax through Fiancée

Before becoming your life-partner, Fiance can become partner in your tax planning. If she does not have any taxable income or falls in the lower tax bracket than you can transfer some money to her which she can invest and gain money. The income from these investments will not be clubbed with your income as the transfer took place before the marriage.

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