Hi,
I ha ve a doubt. Im myself earning and lie in the highest tax bracket. However, my wife is in 10% income bracket.
Is there anyway by which I can give/transfer my earnings to her, there by reducing my tax load?
Thanks and regards
:)
HonestTaxpayer (Software Engineer) (103 Points)
23 July 2009Hi,
I ha ve a doubt. Im myself earning and lie in the highest tax bracket. However, my wife is in 10% income bracket.
Is there anyway by which I can give/transfer my earnings to her, there by reducing my tax load?
Thanks and regards
:)
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 23 July 2009
Well, how about gifts? Or some sort of interest free loan?
CA Tirth Ajani
(CA DISA LLM Bcom IFRS Compliance)
(460 Points)
Replied 23 July 2009
u can give loan to your wife....and she can invest in her name
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 23 July 2009
Hey thanks for the replies ...
Now ... two questions!
1. How does the tax scene pan out? I mean lets say I give her a loan of around 1 lakh interest free ... then that 1 lakh gets deducted frm my taxable income. Right? How much is her tax liability?
2. If indeed I give her loan, what needs to be done officially/paperwork wise to ensure there is no legal loophole?
CA KARTHIK
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 24 July 2009
Originally posted by :HonestTaxpayer | ||
" | Hey thanks for the replies ... Now ... two questions! 1. How does the tax scene pan out? I mean lets say I give her a loan of around 1 lakh interest free ... then that 1 lakh gets deducted frm my taxable income. Right? How much is her tax liability? 2. If indeed I give her loan, what needs to be done officially/paperwork wise to ensure there is no legal loophole? |
" |
Interest Free Loans given to ur wife shall not be alloed as deduction to you..........You better take a Housing loan and the interest and principal amount paid by you can reduce your tax liability....
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 24 July 2009
Then how about this reply given by one good gentleman ...
" u can give loan to your wife....and she can invest in her name"
It does look as if loaning her money will save me something
CA KARTHIK
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 24 July 2009
Originally posted by :HonestTaxpayer | ||
" | Then how about this reply given by one good gentleman ... " u can give loan to your wife....and she can invest in her name" It does look as if loaning her money will save me something |
" |
You can give loan and she can invest the same....Thats true.....
But there is no provision in the income tax that you will get the deduction for the loan u give to ur wife...
RAMANJU
(here to updating the knowledge)
(485 Points)
Replied 24 July 2009
HonestTaxpayer
(Software Engineer)
(103 Points)
Replied 24 July 2009
Originally posted by :RAMANJU | ||
" | Mr. Karthik is correct. In My opinion there is no way out to reduce your tax by taking the advantage of your wife's low income. |
" |
Hmmm, well I guess then that settles it. I thank you all for helping me learn some new things :)
Really appreciate it!
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