Tax Benifits that Wife can claim, if she is not working or getting less salary?

Hello All,

What are the tax benifits one can avail when wife is not working or getting very less salary when compared to husband.  Please add more light on this.

Thanks

Sunil Kumar

3 CommentsAdd Comment

  1. ashal jauhari

    Dear Sunil, I’m unable to understand your query. What you want to know? If your wife is not working & she does not has any source of income, Question of taxation & tax benefit there on does not arise.

    Very less salary, I assume you meant to say that she is in zero tax slab. Again being in zwero tax slab, the question of additional tax benefit does not arise.

    It’s better if you can elaborate your query in detail.

    Thanks

    Ashal

  2. Sunil Kumar

    Dear Ashal,

    Now, I realise that I am not clear:-)

    Keen to know, if I can invest(that I earn) in my wife name to get tax benifits, since she is not working. If yes, what are the options available?

    Thanks
    Sunil Kumar

  3. ashal jauhari

    Dear Sunil, I got your point. You want to invest in such a way, that you are able to claim section 80C tax benefit & in case the income if any arise, it becomes taxable in the name of your wife.

    My dear friend, PPF & Investment oriented Life Insurance policies are the only 2 options. where you may claim tax deductions/benefits on the investments done under your wife’s name.

    PPF is always tax free, hence question of taxation does not rise.

    For investment oriented life insurance policies, again maturity amount is tax free if the 5X sum assured as per current rule & 20X sum assured of the annualized prem. as per DTC is maintained.

    NSCs, ELSS, Pension Policies, Bank Tax Saving FDs, Infra Bonds etc. are not eligible for the benefit you are searching for as the investments in these instruments should be in your name only to be eligible for tax benefit.

    I hope I’m able to help you.

    Thanks

    Ashal

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