Will tax saving mutual fund in wife’s name earn me rebate under section 80.?



I got Reliance Tax saver in my wife’s name. She’s dependent on me and does not has an income. Will this saving earn a rebate for me in income tax calculations, and under what section?

Will tax saving mutual fund in wife’s name earn me rebate under section 80.?
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4 Replies to “Will tax saving mutual fund in wife’s name earn me rebate under section 80.?”

  1. I think it is allowed. But not 100% sure. Please clarity the same with your tax consultant.

    If you have invested your money and purchased the Reliance Tax saver, then you can claim rebate u/s 80C. But it is not good practice. Next time buy it in joint names. (First name yours and 2nd name your wife’s).

    ” It may be noted that the above payments would be eligible for deduction as follows: For the Individual The Individual, husband or wife and any child of the Individual (here child includes adult children and married daughter ”

    The above words are from the below web site:

    http://209.85.175.104/search?q=cache:xaShWuE6ArkJ:www.dignityfoundation.com/pdfs/01-07-7-2.pdf+80c+tax+savings+scheme+wife+name+tax+benefits&hl=en&ct=clnk&cd=1&gl=in

    Another example which has to be interpretated
    for other investments. The income tax department in their web site clearly says that the benifit will be given to the person who has invested it. Why not the same will apply for other investments also ??

    The following lines are in Income Tax web site. The link of it has been given below after the few lines.

    ” (ii) Whether rebate of income-tax under section 80C will be available where

    (a) National Savings Certificates VI Issue/VII Issue are purchased in the name of spouse and minor children, and

    (b) jointly by husband and wife? ”

    The answer to question (i) will apply also here. The deduction under section 80C is to be given ” to the person who has purchased the National Savings Certificates out of his income chargeable to tax. ”

    http://incometaxindia.gov.in/circulars/1985/Cir405.asp

    Another web site says it is allowed.
    http://www.taxworry.com/2007/01/savings-in-parents-name-will-not-give.html

    Another web site:
    Q. My wife has no income of her own, can I save tax by investing in her name?

    You can invest in life insurance policies and also PPF in your wife’s name to enjoy tax benefits. However, the total limit of these investments would be Rs 1 lakh.

    http://www.moneycontrol.com/india/news/tax-expert/get-tax-wise-expert-adviceinvestments/236779/2

    Another web site.
    ” Under the I T Act, as far as investment is concerned , maximum deduction one can avail of Rs 1 lakh . This is under section 80C of the I T Act. Following investments done in family member’s name are eligible for consideration for deduction u/s 80C.

    Life Insurance .
    Deferred annuity plan
    Public Provident Fund
    ULIP of UTI or LIC ”

    http://www.taxworry.com/2008/01/which-investments-in-your-family-member.html


  2. Yes, as long as you can prove that the invested money came from your income. And of course your wife should not be claiming tax exemption on the same investment.


  3. No,you can not claim deduction for purchase of units on wife’s name .premium of insurance policy can be claimed if policy is taken on insurance policy.i am 101 % sure.Even the link refereed by Mr Ready is also written that mutual fund should be in the name of person himself

    if u interest in life insurance policy claim on wife’s name than read the following link

    http://simpletaxindia.blogspot.com/2008/02/life-insurance-premium-paid-on-wifes.html






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