Guide and Benefits of Family Tax Planning for Married Couples

Posted on: Mar 17, 2022 | 3 mins | Written by: HDFC ERGO Team

Guide and Benefits of Family Tax Planning for Married Couples

Planning your tax can be tedious, but it becomes much easier when you have a partner to share that load with. For married couple, you and your partner can take on the task of family tax planning together and take advantage of the tax benefits that you can enjoy together.

For Indian citizens, it is not necessary to combine your incomes and tax filings. This means that you both can file for income tax returns individually and utilize the double benefit of tax exemptions for your household. As the financial year draws to a close, it is the right time to get your family tax planning started.

Here are some points that may help you and your spouse make the most of tax benefits together

1. Plan investments:

One of the biggest advantages of planning for taxes as a married couple is that you can gain tax benefits for your investments, provided you are smart about it. If both individuals are earning, your combined incomes can make for a significant amount of investment capital. This provides you opportunities to invest more and enjoy the returns as well. But a better way to adapt may be to have the partner whose annual income falls in the lower tax bracket to do the investments, and the other person can take care of the rest of the expenditure. This will reduce the tax burden too.

2. Think about insurance:

A financial plan for the future is necessary and it should be chalked out by keeping the best interest for your family in mind. You also need to consider sudden health emergencies which could create monetary stress on your family. So, you need to buy a good health insurance for your family. Investing in a good family health insurance will also give you tax benefits under the Income Tax Act.

3. Expenditure for Children:

Another very important point to consider during family tax planning is that of your children. Married people can avail tax benefits for a variety of expenses contributing to their growth and development.

Conclusion

Like everything else in the household, tax planning responsibility should also be shared and planned by couples. Apart, from saving money and managing your wealth, make sure you buy the best family health insurance, not just for receiving tax benefits but also to safeguard your loved ones from potential health emergencies in the future.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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