Husband Can Claim 80C Tax Benefits on Wife’s PPF, Not ELSS Investments
PPF Contributions in Spouse’s Name Eligible for Deduction Under Section 80C
ELSS Investments Must Be in Investor’s Own Name to Qualify for Tax Benefits
By Our Legal Reporter
New Delhi: December 09, 2025:
Tax planning is a crucial part of personal finance in India, and Section 80C of the Income Tax Act, 1961 remains one of the most popular provisions for saving taxes. It allows individuals to claim deductions of up to ₹1.5 lakh per financial year under the old tax regime by investing in approved instruments such as PPF, ELSS, NSC, NPS, ULIPs, and Sukanya Samriddhi Yojana.
A common question among taxpayers is whether a husband can claim 80C benefits if he invests in his wife’s name. Recent clarifications from tax experts and financial publications confirm that PPF contributions made to a spouse’s account are eligible for deduction, but ELSS investments in a spouse’s name are not.
Section 80C and Its Scope
Section 80C covers a wide range of investments and payments, including:
- Public Provident Fund (PPF)
- Equity Linked Savings Scheme (ELSS)
- National Savings Certificate (NSC)
- Unit Linked Insurance Plans (ULIPs)
- Employees’ Provident Fund (EPF)
- National Pension Scheme (NPS)
- Sukanya Samriddhi Yojana (SSY)
- Life Insurance Premiums
- Tuition Fees for Children
The maximum deduction allowed is ₹1.5 lakh per year under the old tax regime.
Also Read: Karnataka High Court Quashes Income Tax Notices Against Actor Yash, Declares Him a ‘Searched Person’
Husband’s Claim on Wife’s PPF
According to tax experts, PPF contributions made by a husband to his wife’s account are eligible for deduction under Section 80C. The law specifically allows contributions to the PPF accounts of:
- Self
- Spouse
- Children
This means that if a husband deposits money into his wife’s PPF account, he can claim the deduction in his own income tax return.
Example:
- Husband deposits ₹1,00,000 in his wife’s PPF account.
- He can claim this amount under Section 80C, subject to the overall limit of ₹1.5 lakh.
Husband’s Claim on Wife’s ELSS
The situation is different for ELSS investments. ELSS is a mutual fund scheme with a three-year lock-in period that qualifies for 80C deductions. However, the deduction is only available to the person in whose name the investment is made.
If a husband invests in an ELSS scheme in his wife’s name, he cannot claim the deduction. The benefit will only be available to the wife if she files her own tax return.
Also Read: Supreme Court Rules EPF Dues Take Priority Over Secured Creditors Under SARFAESI Act
Example:
- Husband invests ₹1,00,000 in ELSS in wife’s name.
- Deduction cannot be claimed by husband.
- Wife can claim it if she has taxable income.
Clubbing Rules and Tax Implications
Another important aspect is the clubbing of income under the Income Tax Act. If a husband gifts money to his wife and she invests it, the income generated from that investment may be clubbed with the husband’s income.
- PPF: Interest earned is tax-free, so clubbing does not affect tax liability.
- ELSS: Returns are taxable as capital gains. If invested with gifted money, gains may be clubbed with husband’s income.
This makes it important for couples to plan carefully when investing in each other’s names.
Expert Opinions
Financial advisors emphasize the need for clarity:
- Balwant Jain (Tax Expert): Contributions to spouse’s PPF are eligible for deduction, but ELSS investments must be in the taxpayer’s own name.
- Media Report: Confirms that Section 80C allows deductions for PPF in spouse’s name but not ELSS.
- TaxBuddy Analysis: Advises taxpayers to avoid confusion by keeping ELSS investments in their own names.
Practical Tips for Taxpayers
- Use PPF for Spouse’s Account: Safe, tax-free, and eligible for deduction.
- Keep ELSS in Own Name: To ensure deduction under Section 80C.
- Plan Jointly: Couples should coordinate investments to maximize the ₹1.5 lakh limit.
- Beware of Clubbing Rules: Especially for taxable instruments like ELSS.
- Choose Old vs. New Tax Regime: Section 80C benefits apply only under the old regime.
Also Read: ED Attaches ₹4,190 Crore in Crypto Fraud Cases; One Accused Declared Fugitive Economic Offender
Conclusion
The clarification on whether a husband can claim Section 80C tax benefits on investments made in his wife’s name provides much-needed relief to taxpayers. The rule is simple:
- PPF contributions in spouse’s name are eligible for deduction.
- ELSS investments in spouse’s name are not eligible.
This distinction ensures that taxpayers can plan their investments wisely, maximize tax savings, and avoid disputes during assessment.
For couples, the message is clear: use PPF for spouse’s account, keep ELSS in your own name, and always plan jointly to optimize tax benefits.
Suggested Keywords for Faster Searches
- Husband claim 80C tax benefits wife PPF
- Section 80C deduction spouse investments India
- ELSS tax benefits husband wife rules
- PPF contribution spouse eligibility 80C
- Clubbing rules income tax spouse investments
- Tax planning husband wife Section 80C
- Old tax regime 80C deduction India
- ELSS vs PPF tax benefits spouse
- Income tax deduction investments in wife’s name
- Personal finance tax saving India 2025
Also Read: Allahabad High Court Rules ITC Reversal Invalid When Supplier Was Registered and Paid GST