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. 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 of
Income Tax Deduction u/s. 80C is for each account to per
major Individual member & not for only Husband & wife
taken together or Wife & Husband, both, It can avail
separately by depositing Rs. 1 Lacs each in the PPF Account.
u/s 64(1) (iv) of the Income Tax Act-1961, any income arising
from assets transferred to spouse without adequate
consideration is taxable in the hands of the transferor and
not in the hands of transferee. However, if asset is acquired
by the spouse out of pin money (i.e., a reasonable allowance
given to the wife by her husband for her dress and usual
household expenses) then the income from such assets
cannot be clubbed with the income of her husband. [R.B.N.J
Naidu 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 of
Pin Money accumulated & invested need not be clubbed
with the income of your husband. The same could be treated
as your income.
The amount need not transferred by depositing the amount
in her account via cheque or DD. Even the amount given in
cash and saved by the wife could be considered for the
purpose
Thanks