Husband's 80C on spouse's PPF/ELSS: Yes for PPF, No for ELSS

• A taxpayer can claim Section 80C deduction for contributions made to their spouse's PPF account.
• ELSS investments in a spouse's name do not qualify for 80C deduction, even with the taxpayer as a second holder.
• Under Section 64 of the Income Tax Act, income generated from investments gifted to a spouse is clubbed with the donor's income.
• While PPF interest is tax-free, income from the gifted amount at maturity is clubbed; ELSS capital gains are also clubbed and taxed.
• Section 80C deductions are only available if the taxpayer opts for the old tax regime.

Why It Matters: Clarifies 80C tax benefits for investments in a spouse's name.