Funding your spouse's PPF account? Tax expert explains how Section 80C rules

Funding a spouse's PPF account allows the contributor to claim a Section 80C deduction of up to ₹1.5 lakh, provided the contribution is from the contributor's own income.

The PPF account legally belongs to the spouse, who has exclusive rights to operate it, nominate beneficiaries, take loans, and receive maturity proceeds.

Clubbing provisions may apply if the contribution is made without adequate documentation or from non-own funds, potentially attributing income back to the contributor.

Maintaining an audit trail through bank statements and PPF deposit receipts is essential to substantiate the contribution for tax deduction claims.

The annual contribution to a PPF account is capped at ₹1.5 lakh, and the deduction is subject to the overall Section 80C limit and the applicable tax regime.