Guide to saving tax and securing wealth in marital life

Marriage is not just a union of two individuals, but it is also a significant financial partnership. Decisions such as investment, property ownership, loans, insurance, and inheritance planning have long-term impacts on a couple's future. In a panel discussion on the topic 'Couple finance: Tax efficiency and managing contingencies' organised at 'ET Wealth Expo 2026', financial experts provided detailed guidance to couples on creating a financial framework, avoiding income tax clubbing mistakes, and securing assets.

Suresh Sadagopan, founder of Leader7 Financial Advisory, stated that couples adopt different financial arrangements depending on their circumstances. Some couples maintain separate accounts and investments, while in others, one spouse manages household expenses and the other invests. However, he warned against arrangements where one spouse spends all their earnings while the other accumulates assets. If difficulties arise in married life, the spouse who has not built independent assets may face a financial crisis. He suggested a hybrid arrangement, where both spouses contribute to a joint account for household expenses in proportion to their income and use individual accounts for investments, so that both remain active in wealth creation.

Nitin Kaushik cleared a common misconception regarding income tax clubbing. Many believe that transferring money to a spouse and investing in their name can save tax, but according to income tax rules, if a husband gifts money to his wife and she invests it in a fixed deposit or mutual fund, the income generated from it is counted as the husband's income, and he must pay tax on it. Changing ownership does not change the tax liability. Kaushik suggested that couples can provide loans to each other at reasonable rates with proper documentation. If a husband provides a loan to his wife at 6-7% interest and the wife earns a higher return, a tax planning opportunity may arise, but this transaction must be genuine.

Hitesh Shah emphasised that there is no single universal tax planning formula for couples. Opportunities depend on their income, tax slab, and investment goals. While purchasing property jointly, couples should maintain a clear record of contributions. Often, one spouse contributes more towards the down payment, while the other pays the EMI. Maintaining documentation of these transactions reduces disputes. Simply adding a name does not provide tax benefits, but loans and ownership shares should be taken into account. Aditi Sharma added that asset ownership should be for family security, not just for saving tax. If all assets are in one person's name, the other may face difficulties in the event of death or incapacity.