The deadline for Income Tax Return (ITR) filing for FY2019-20 has been extended to 30th November 2020.
So, those who haven’t filed their ITR have got ample time to use the income tax calculator and find out various ways to save money.
According to experts, if someone has investments in equities, then money that is meant to go as income tax on long term capital gains (LTCG) can be saved. This can be on up to Rs 2 lakh and the trick is simple – by investing in the name of spouse too.
On how a spouse can help an investor save income tax on equity investment, Senior Manager at DhanTax said, “As per Section 112A a person can claim an initial exemption up to Rs 1 lakh on long-term capital gains (LTCG) arising on sale or transfer of listed equity shares or units of equity oriented schemes every year provided Security Transaction Tax (STT) has been paid. Since this exemption can be claimed by each tax payer, the investments can be made in the names of both the spouses so as to avail the benefit of this exemption every year as long as it is possible.”