80C: PPF for Spouse/Kids OK, ELSS Not; Clubbing Rules Apply

• Section 80C allows up to Rs 1.5 lakh annual tax exemption for investments like PPF, ELSS, NPS, SSY, NSC, and SCSS under the Old Tax regime.
• Taxpayers can claim Section 80C deduction for contributions to their own, spouse's, or children's PPF accounts, including for minor or financially independent children.
• However, Section 80C deduction cannot be claimed for Equity Linked Savings Schemes (ELSS) investments made in a spouse's name.
• Gifting money to a spouse or children is treated as a gift; while the gift itself is not taxed, capital gains and interest arising from it are taxable for the giver due to clubbing provisions (Section 64).
• For PPF, income from the giver's contributions at maturity is taxable for the giver. For ELSS, capital gains on redemption are taxed for the giver under Section 112A.

Why It Matters: It clarifies tax benefits for family investments under Section 80C.