Prove This Proverb “Kill two birds with one stone” Just By Investing in this Yojana On Your wife’s name, To Save Tax and Your Wife will also Become Happy – Save Taxes Just By Making Invest in This Scheme
Are you married and your wife is a housewife? If yes, she can help you in saving income tax money. Often people invest in different kind of schemes to save their income tax. However, this is not enough to do so.
What To Do For Saving Income Tax Money
In such a situation, you can get a fixed deposit (FD) done on your wife’s name. This will not only give guaranteed returns, but will also help in saving tax payers money.
Two Main Benefits of Investing in Fixed Deposits
Investing in fixed deposits has always been a popular option to all of us. It is safe and the return is guaranteed. But if you get an FD done on your wife’s name, then it has two big benefits – Number one, good income from interest and second one, income tax savings.
How to Avail Tax Exemption?
According to the income tax rules, if the interest received on FD exceeds amount Rupees 80,000, then TDS (Tax Deduction at Source) is deducted. However, if your wife is a housewife and has no income source, then this TDS will not be deducted from her FD account. For this, you will have to make an FD on the name of your wife and along with this do not forget to fill Form 15G.
Option of joint FD
If you wish, you can also open a joint FD account with your wife. But keep in mind that it is necessary to make the wife the first holder in such account. By doing this you can avoid TDS deduction and take advantage from tax exemption.
What is Form 15G?
Form 15G is for those citizens whose age is less than 60 years and their annual income is less than the taxable limit fixed by the government. This is a declaration form, which comes under section 197A (1) and 1 (A) of the Income Tax Act. By filling this type of form, you can inform the bank that your income is not taxable anymore. After this the bank will not deduct or stop deducting TDS from your FD account.
What is Form 15H
Mainly Form 15H is for senior citizens, if you have crossed 60 years of age, you must fill Form 15H. This form gives senior citizens one option to stop TDS deduction from their FD account. However, this facility is only available for those candidates who have zero taxable income.