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Section 80 C

Sona Shalini (Chartered Accountant CS Final ) (82 Points)

05 July 2011

An assessee has opened a PPF account in his name and his wife's name. He has invested Rs.70,000/- in each account. Can he claim both the amounts invested, under section 80C as deductions.

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23 Replies

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 05 July 2011

No,

for claiming deduction under sec 80C only that persons amount of invetment is eligible not of his wife.

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M. N. JHA (CA) (8316 Points)
Replied 05 July 2011

Originally posted by : TusharSSampatM.Com CA,CS-FINAL
	No, for claiming deduction under sec 80C only that persons amount of 80C is eligible not of his wife.

AGREE , INVESTMENT IN 80C ALLOWED ONLY ON OWN INVESTMENT.........

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 06 July 2011

Originally posted by : Sona Shalini
	An assessee has opened a PPF account in his name and his wife's name. He has invested Rs.70,000/- in each account. Can he claim both the amounts invested, under section 80C as deductions.

overall ceiling of PPF is 70000 for self + minor child

PPF contribution of wife is not eligible for any assessee

1 Like

CA Rakesh Garg (Asst. MGR Taxation) (510 Points)
Replied 06 July 2011

An assessee has opened a PPF account in his name and his wife's name. He has invested Rs.70,000/- in each account. Can he claim both the amounts invested, under section 80C as deductions.

overall ceiling of PPF is 70000 for self + minor child

PPF contribution of wife is not eligible for any assessee

2 Like

Sona Shalini (Chartered Accountant CS Final ) (82 Points)
Replied 06 July 2011

People... Contribution to PPF in an account standing in the name of an individual and contribution by an individual in an account standing in the name of spouse is eligible for deduction.

My question is whether over and above 70000/- can be claimed as deduction u/s 80C??? since he has deposited 70,000/- each (both in the individuals account as well as his wife's account)

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Aditya ( Finance) (30 Points)
Replied 06 July 2011

Originally posted by : Sona Shalini
	An assessee has opened a PPF account in his name and his wife's name. He has invested Rs.70,000/- in each account. Can he claim both the amounts invested, under section 80C as deductions.

No , for claiming deduction U/s 80 c only the the assesee 's investment is considered.

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vishal kumar srivastva (Article) (49 Points)
Replied 06 July 2011

Originally posted by : Sona Shalini
	An assessee has opened a PPF account in his name and his wife's name. He has invested Rs.70,000/- in each account. Can he claim both the amounts invested, under section 80C as deductions.

Ya he claim both but total amount of investment is 100000.

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CA Siddhi (PRACTICE) (257 Points)
Replied 06 July 2011

Yoou can claim Rs 100000 as deduction u/s 80C. 70000 PPF and he can invest 30000 more in 80C deductions

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CA Dipak (achiever) (238 Points)
Replied 06 July 2011

Individual can invest Rs.70000/- in PPF a/c during the year. this limit is under PPF and not under income tax act.PPf deposited in name of individual himself,spouse and his /her child is eligible for deduction subject to maximam Rs.100000/-. Howevre, 70000/- in each a/c rule has to be follow.

so, in your case both amount can be claim u/s 80c.

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CA Dipak (achiever) (238 Points)
Replied 06 July 2011

so, in your case both amount can be claim u/s 80c.even though it exceed 70000/-rs. claim another 30000/-rs. for spouse.

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Sona Shalini (Chartered Accountant CS Final ) (82 Points)
Replied 06 July 2011

Originally posted by : Dipak
	Individual can invest Rs.70000/- in PPF a/c during the year. this limit is under PPF and not under income tax act.PPf deposited in name of individual himself,spouse and his /her child is eligible for deduction subject to maximam Rs.100000/-. Howevre, 70000/- in each a/c rule has to be follow for PPF. so, in your case both amount can be claim u/s 80c.even though it exceed 70000/-rs. claim another 30000/-rs. for spouse.

Thank u.

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 06 July 2011

Deduction for PPF Contribution can never ever exceed Rs. 70000/- in any case.......
It is to be given priority than sec. 80C Deduction....... i.e. if there is any other deduction other than PPF, then only it can exceed Rs. 70000/-....... but upto Rs. 100000/-.........

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Paras (Mcom,CA Final) (122 Points)
Replied 06 July 2011

are people kiddin ???

Contribution to Provident Fund or Public Provident Fund. PPF provides 8% return compounded annually. Maximum limit to contribute in it is 70,000 for each year. It is a long term investment with complete withdrawal not possible till 15 years though partial withdrawal is possible after 5 years. Besides, there is employee providend fund which is deducted from the salary of the person. This is about 10% to 12% of the BASIC salary component. Recent changes are being discussed regarding reducing the instances of withdrawal from EPF especially when one changes the job. EPF has the option of full settlement on leaving the job, taking VRS, retirement after 58. It also has options of withdrawal for certain expenses related to home, marriage or medical. EPF contribution includes 12% of basic salary from employee and employer. It is distributed in ratio of 8.33:3.67 in Pension fund and Providend fund.