Tax Planning By DINKs (Double
Income No Kids)
Working
couples who have no children are known as DINKs (Double Income No Kids).
Substantial tax planning is needed for them even in the initial years of their
married life. The best tax planning which DINKs should adopt is that each one
of them should take full advantage of income tax exemptions and deductions. The
present exemption limit for the financial year 2012-2013 is `2,00,000 for every
individual tax payer. In addition, for a woman tax payer also the exemption
limit would be `2,00,000. Thus, for the financial year
2012-2013, DINKS would be able to enjoy a combined exemption limit of `4,00,000. In the past
the tax exemption slabs were not so very attractive. They should also make
investments in a residential house by taking a loan and thus save income tax up
to the maximum extent (each of them). They should also plan a separate income
tax file of HUF.