If you want to save tax then this is also a way, it will be a big benefit and the way is also easy

Tax Saving Tips: There are many ways to save tax. There are many rules in the Income Tax Act, with the help of which you can easily save tax. Taxpayers can avail benefits like refund on investment and amount spent in various sectors. Today we are going to tell you another option to avoid tax. Which is the clubbing provision.

You can make some investments or deposit funds in the name of your spouse or minor children. In this case, the clubbing of income provision of the Income Tax Act applies. That is, by depositing or investing money in the wife's account, you can get the benefit of tax savings.

What is the rule of clubbing provision?

Sections 60 to 64 of the Income Tax Act have a provision for “clubbing of income”. If the income from any source is in your name, then you will have to pay tax. This rule applies to individual taxpayers. Simply put, if you give money or part of your earnings to your spouse under certain circumstances, the interest or dividend earned on it will be added to your income. Therefore, it is taxed. This is called the clubbing provision. If you gift this amount to your spouse, then no tax will be levied on it. But the clubbing rule will apply to the interest and profit earned on it.

Ways to save tax through investments

If your spouse has very little or no income, you can invest in her name. For example, fixed deposits, mutual funds, PPF…there is no tax on investments made in the name of the wife in these sources. But the income from this is taxed less. You can also deposit money in a savings account in the name of the wife. Earnings up to Rs. 10000 through interest in the savings account are tax free.