She deposited there Rs. 100000/- during the F.Y. 2011’12.
Now my question:- 1. who will claim I. Tax rebate? i) only my wife maximum Rs. 100000/-, or ii) may be my wife an I also
Rs. 100000/- each or total Rs. 100000/- together, iii) We are three Rs. 100000/- each or Rs. 100000/- together.
The first option is correct. As per section 80C of the Income tax Act, 1961, the exemption can be claimed for investment in the account of spouse and children but the assessee should be the contributor. In a nutshell, the exemption can only be claimed by the contributor. I would also like to inform you that the maximum amount of investment in P.P.F has been raised to Rs. 1 lakh from Rs. 70,000 and in this case, only your wife is entitled to get exemption for the whole amount. Hope it was helpful to both of you.
