80C: Claim tax benefits on wife's PPF, not ELSS, says Balwant Jain.

• Taxpayers can claim Section 80C deduction for investments made in their spouse's or children's PPF accounts.
• For ELSS, tax benefits under Section 80C are only applicable if the investment is made in the taxpayer's own name.
• Investments in a spouse's name are considered a gift; any income generated from this gift for the spouse will be clubbed with the taxpayer's income under Income Tax Act Section 64.
• PPF interest is tax-free, so clubbing provisions generally don't apply during the accumulation phase.
• Capital gains from ELSS redemption in the spouse's name will be added to the taxpayer's income and taxed under Section 112A.

Why It Matters: Understand tax rules for family investments like PPF/ELSS to maximize benefits.