Tax deduction: Can one claim Section 80C exemption on PPF, ELSS investments done in spouse's name

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Tax deduction: Can one claim Section 80C exemption on PPF, ELSS investments done in spouse's name?

Many people max out their Section 80C limit — but a major doubt keeps coming up every tax season. If you invest in PPF or ELSS in your spouse’s name, can you still claim the deduction? The answer isn’t as simple as it seems, and the rules differ sharply between PPF and ELSS.

Section 80C of the Income Tax Act lets individuals and Hindu Undivided Families (HUFs) claim deductions of up to Rs 1.5 lakh a year for certain eligible investments. This helps reduce your taxable income — and therefore your tax outgo — but only if you’re using the old tax regime, as the new regime doesn’t recognise this deduction. The Rs 1.5 lakh cap also includes deductions under Sections 80CCC and 80CCD(1).

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