Section 80C ITA 1961 allows DEDUCTION from gross total income on specified investments and contributions up to a maximum of:
Answer & Solution
Correct answer: C.
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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