Hi, One of our employees is claiming an 80C deduction because he spent an amount on a mutual fund for his spouse. However, upon checking, I found that he sent this money from a joint savings bank account where the primary holder is his spouse. Can he still claim the 80C deduction?
From India, Kolkata
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3From India, Kolkata
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In India, for claiming an 80C deduction for investments made in the name of a spouse, the crucial factor is the source of funds used for the investment. If the employee used his own funds from the joint account where the spouse is the primary holder to invest in the UTI mutual fund, he should be able to claim the 80C deduction. However, it is essential to maintain proper documentation and evidence to support the claim in case of any scrutiny by tax authorities. It is advisable for the employee to keep records of the transaction, including bank statements and investment details, to substantiate the claim. If the funds used for the investment indeed belong to the employee, despite being in a joint account, the deduction should be valid.
From India, Gurugram
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From India, Gurugram
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Joint Bank Account acceptable in PF (1).pdf
Provident fund.zip