Controversial Opinions are here as follows:-
1. Claim of NSC is not available of Spouse
80C(2)(ix) is silent on availment of deduction in respect of subscripttttion to NSC in the name of spouse and children, unlike 80C(2)(v) - contribution to PPF, where in it specifically clarifies the availability of deductions in case of contributions to the specified accounts of PPF and 80C(2) (i) LIC premiums, 80C(2)(xi) - ULIP investments In view of the above I am of the view that subscripttttion to NSC in the name of spouse / children would not be eligible for deduction u/s. 80C.
2. Claim of NSC is available of Spouse, Minors
Below is the extract from a very old circular - Pls note the crossed through text doesnot is not valid in present scenario.
Person to whom deduction is admissible - The deduction under section 80C can be claimed by the person who has contributed the monies
out of his income chargeable to tax. It can be claimed by the first-named person in a joint holding if the first-named person has so contributed the amount.
The deduction under section 80C is to be given to the person who has purchased the NSCs
out of his income chargeable to tax.
The interest accruing on the subscripttttion to the NSCs will be included in the hands of the person who has subscribed from his income chargeable to tax.
The amount of interest re-invested will satisfy the test of having been paid out of income chargeable to tax to get the NSC and so will be entitled to deduction under section 80C.
Where subscripttttion to the NSCs in the name of any member of the HUF, is shown by the family to have been made
out of its income chargeable to tax and the beneficial ownership in such certificates vests in the family, the family would be entitled to a deduction under section 80C with reference to such contribution.
The interest accrued would be included in the hands of the persons who purchased the NSC
out of their income chargeable to tax.—Circular : No. 405 [F. No. 178/1/84-IT(A-I)], dated 15-1-1985 as corrected by Circular : No. 418 [F. No. 178/1/84-IT(A-I)], dated 2-5-1985.
Point to be take Care:- Deduction can be claimed for NSC in named of spouse or child.......bt it may be noted that payment should be made from the Assessee's a/c.
Second is highly recommend in our case.