Archive · 10 Dec 2025
Section 80C Deduction: Claiming Exemptions on Spouse's Investments
Section 80C of the Income Tax Act allows people to save taxes by investing in certain things like PPF, ELSS, or paying for things like home loan principal or school fees.
The maximum amount you can save tax on is Rs 1.5 lakh per year.
A common question is whether you can claim these tax savings if you invest in your spouse's name.
For PPF, the answer is yes, as long as you pay directly from your own money.
For ELSS, it's a bit more complicated.
Some experts say you can only claim the tax saving if the investment is in your own name.
If you give money to your spouse and they invest it, you can't claim the tax saving.
Also, any money earned from investments made by your spouse might be added to your income and taxed.
So, it's usually best to invest directly in your spouse's PPF account if you want to claim the tax saving.
Section 80C allows deductions up to Rs 1.5 lakh per year for eligible investments and expenses.
Husbands can claim Section 80C deductions for contributions to their wife's PPF account if paid directly from their income.
For ELSS investments, deductions are typically available only when made in the taxpayer's own name.
If money is gifted to a spouse first, the husband cannot claim Section 80C deduction for investments made by the spouse.
Income from investments made by a spouse may be clubbed and taxed in the husband's hands under Section 64(1)(iv).
- Who
- Individuals and Hindu Undivided Families (HUFs) using the old tax regime
- What
- Claiming Section 80C deductions for investments made in spouse's name
- When
- During the financial year when investments are made
- Where
- India
- Why
- To reduce taxable income and overall tax liability
- Section 80C Deduction Limit
- Rs 1.5 lakh per financial year
- Eligible Investments
- PPF, ELSS, EPF, NSCs, Tax-saving FDs, Sukanya Samriddhi Yojana, Senior Citizens’ Savings Scheme, ULIPs, Life Insurance Premiums, Pension Funds (Section 80CCC), NPS (Section 80CCD)
- Eligible Expenses
- Principal repayment on home loan, Stamp duty and registration charges, Tuition fees for up to two children
- PPF Deduction Rule
- Husband can claim deduction for contributions to wife's PPF account if paid directly from his income
- ELSS Deduction Rule
- Deduction typically available only when investment is made in taxpayer's own name
- Gift to Spouse Rule
- If money is gifted to spouse first, husband cannot claim Section 80C deduction for investments made by spouse
- Clubbing of Income
- Income from investments made by spouse may be clubbed and taxed in husband's hands under Section 64(1)(iv)