Your family

Your family members, especially those who are not earning any salary or working in a low scaled job like your spouse, children, or your parents, can be used to save income tax.

You can shift some of your taxable income to their name and save taxes, as the income you have shifted as well yours, both will fall in a lower slab.
You can use your spouse or even children to reduce your taxes. By shifting of taxable income to another person’s name, the amount of tax you need to pay overall decreases provided the other person falls in a lower tax slab. By moving income from yourself to members of your family you are actually moving income to lower income tax group payers and thus the overall income that you need to pay is reduced.

For example, you are working in 3 places. From one, you earn Twenty Thousand Dollars per annum, from the second you earn thirty thousand dollars per annum, and from the third one you earn One thousand dollars per annum. So, if all these incomes are in your name, then you will have a net income of 51,000$ per annum. Where as, If you work under the name of your children, or any other non working member in your family besides working under your name, then the net taxable income will be lesser than 51,000$, and will fall under smaller slabs.

Hence, by this method you will be able to save a lot of money, which you otherwise would have paid as income tax.

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