More earning people have to pay a lot of tax. Therefore, they have to be careful in financial transactions. If your income also comes in the most tax slab, then it is important for you to know some special rules of income tax. This can help a lot in tax-saving. For example, if you give a loan instead of a gift to your wife, then you can save a lot of tax.
Tax rates on more income
First of all, it is important to know how much income comes in the most tax slab. If you have income tax (Income taxThe old regimen of) (Old regime of income tax) Use and your annual income is more than Rs 10 lakh, then you will have to pay 30 percent tax. In the new regimen, 30 percent tax is levied on income of more than Rs 24 lakh annually. This means that the tax rates are higher in the old regimen. However, it has to be kept in mind that deduction is benefited in the old regimen. Deduction is not available in the new regimen.
Wife can be given a gift or loan
Suppose your income is Rs 30,00,000 annually. This means that you come in the most tax bracket. Your wife needs Rs 30,00,000 to open the shop. You want to give this money to your wife. It has two ways. You can give this money as a gift to the wife. In the second way, you can give this money to the wife as a loan. In terms of tax, giving this money to the wife as a loan can be quite tax-saving.
Taxes are different on gifts
If you give Rs 30,00,000 to the wife in a gift, then the rules of tax will apply on her. Section 64 (1) (IV) of the Income Tax Act, 1961 says that if a husband gives a gift to his wife, then the wife will not have to pay tax on the income from that money. That income will be added to the income of a person giving gifts (husband). Then the entire income will have to pay tax according to the slab.
Calculation of tax will be done by giving gift
You can easily understand it with the help of an example. Suppose Rs 6 lakh in a year on 30 lakh rupees given to the wife. So this income will be added to husband’s income. This will increase the total income of the husband to Rs 36 lakh annually. They will have to pay tax on income of Rs 36 lakh instead of 30. Suppose the taxable income of the husband is Rs 28 lakh, then after adding income with your gift, your total taxable income becomes Rs 34 lakh. On the taxable income of Rs 34 lakh, you will have to pay a tax of Rs 8,58,000 in the old regimen, while the new regimen will have to pay a tax of Rs 7,77,400.
Calculation of tax on loan
Now we assume that the husband gives a loan of Rs 30,00,000 to the wife. He gives this loan at 10 % interest annually. The use of this loan money has an income of Rs 6 lakh. The wife pays 10 per cent interest to her husband, which means she pays 3 lakh rupees to her husband. Now his profit reduces to Rs 3 lakh.
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Low tax on loan instead of gift
Now the husband’s income remains Rs 31 lakh (28+3). On this income of Rs 31 lakh, the husband’s tax will be Rs 7,64,400 in the Old Regime, while in the new regim, Rs 6,83,800 will be made. This means that the husband is benefiting in the case of tax by giving loan against the gift. The income of the wife is Rs 3 lakh, so that there will be no tax in the new regimen of income tax. The old regimen will have a nominal tax. It has to be kept in mind that this calculation assessment of tax is for the year 2025-26.