Couples usually split their investments to save tax. This includes home loans, rentals and other tax-saving investments. This helps in availing various tax benefits available to individual taxpayers to some extent.
The major benefits available under the old tax regime are:
HRA: Those living in rented houses can split the rent to get maximum HRA and to save tax.
LTA: Since LTA is available twice in a block of four years, couples can split their travel expenses in alternating years and avail the benefit for all four years.
Investments under Section 80C: An individual can avail tax deduction of up to Rs 1,50,000 under Section 80C by making tax-saving investments like fixed deposits, ELSS, life insurance premiums.
Health Insurance (Section 80D): Health insurance premiums can be claimed under Section 80D. An additional deduction of up to Rs 25,000 can be claimed for one’s own policy and up to Rs 50,000 for parents (if they are senior citizens).
National Pension Scheme: Investments made in NPS are also eligible for additional deduction under Section 80CCD(1B) and 80CCD(2).
Charitable Contributions (Section 80G): Contributions made to charitable institutions are eligible for deduction up to a certain limit under Section 80G.
Due to the changes made in the new tax regime, the amount of tax savings an individual can make will depend on the tax regime chosen and the investments made.
For example, if an individual has an annual income of around Rs 24,75,000 and deductions of around Rs 8,00,000, the old tax regime would be more beneficial. This means that if your deductions (including standard deduction, 80C, 80D, HRA, LTA, home loan interest, etc.) exceed Rs 8,00,000, the tax liability under the old tax regime would be lower.
But if your deductions are less than Rs 8,00,000, the new tax regime will be more beneficial. Depending on the income level and investments, couples should analyze and decide which tax regime is most beneficial for them.
Also Read: School Holiday Declared Today in These 3 South Districts
Share
Who Should Avoid Bananas? Know the Health Risks Before You Eat
Top-Selling Earbuds in India 2025: Best Options for Every Budget
