Wife and Husband can avail IT Deduction    u/s. 80C and Pin Money Facility.                   By              Shankar Bose...
Wife and Husband can avail IT Deduction      u/s. 80C and Pin Money Facility.The Income Tax law says that the limit of Rs....
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Deduction under 80 c and pmf

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Deduction under 80 c and pmf

  1. 1. Wife and Husband can avail IT Deduction u/s. 80C and Pin Money Facility. By Shankar Bose Inspector of Income-tax MSTU, Puri
  2. 2. Wife and Husband can avail IT Deduction u/s. 80C and Pin Money Facility.The Income Tax law says that the limit of Rs. 1 Lacs ofIncome Tax Deduction u/s. 80C is for each account to permajor Individual member & not for only Husband & wifetaken together or Wife & Husband, both, It can availseparately by depositing Rs. 1 Lacs each in the PPF Account.u/s 64(1) (iv) of the Income Tax Act-1961, any income arisingfrom assets transferred to spouse without adequateconsideration is taxable in the hands of the transferor andnot in the hands of transferee. However, if asset is acquiredby the spouse out of pin money (i.e., a reasonable allowancegiven to the wife by her husband for her dress and usualhousehold expenses) then the income from such assetscannot be clubbed with the income of her husband. [R.B.N.JNaidu Vs CIT (1956) 29 ITR 194 (Nag) and R.Dalmia Vs.CIT (1982) 133 ITR 169 (Delhi).]Resultantly, the income arising out of the reasonable fund ofPin Money accumulated & invested need not be clubbedwith the income of your husband. The same could be treatedas your income.The amount need not transferred by depositing the amountin her account via cheque or DD. Even the amount given incash and saved by the wife could be considered for thepurpose Thanks

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