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Section 80C ITA 1961 allows DEDUCTION from gross total income on specified investments and contributions up to a maximum of:

  1. Rs 50,000
  2. Rs 2,00,000
  3. Rs 1,50,000
  4. Rs 5,00,000
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Correct answer: C. Rs 1,50,000

1. Section 80C Income Tax Act 1961 allows deduction for investments and contributions: 2. (i) Life insurance premiums; 3. (ii) Public Provident Fund (PPF) contributions; 4. (iii) Employee Provident Fund (EPF) contributions; 5. (iv) National Savings Certificates (NSC); 6. (v) Tuition fees for children (up to 2 children); 7. (vi) Home loan principal repayment; 8. (vii) Equity-Linked Savings Scheme (ELSS) mutual funds; 9. (viii) Sukanya Samriddhi Yojana (for girl child); 10. (ix) Senior Citizens Savings Scheme; 11. (x) Other specified instruments. 12. MAXIMUM DEDUCTION under Section 80C: Rs 1,50,000 (raised from Rs 1 lakh in FY 2014-15). 13. Section 80CCC (pension funds) and Section 80CCD (NPS) together share this Rs 1.5 lakh limit, with additional Rs 50,000 for NPS under 80CCD(1B). 14. Hence option B is correct. _Source: CS Executive Paper 4 Tax Laws (ICSI BoS) + Income Tax Act 1961 + CGST Act 2017 — Income Tax Act 1961, Section 80C_

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