Which of the following deductions is available under Section 80C of the Income Tax Act?
Practice Questions
1 question
Q1
Which of the following deductions is available under Section 80C of the Income Tax Act?
Health insurance premium
Public Provident Fund (PPF) contributions
Interest on home loan
Donations to charitable institutions
Public Provident Fund (PPF) contributions are eligible for deduction under Section 80C.
Questions & Step-by-step Solutions
1 item
Q
Q: Which of the following deductions is available under Section 80C of the Income Tax Act?
Solution: Public Provident Fund (PPF) contributions are eligible for deduction under Section 80C.
Steps: 5
Step 1: Understand what Section 80C of the Income Tax Act is. It allows taxpayers to claim deductions on certain investments and expenses.
Step 2: Identify the types of investments that qualify for deductions under Section 80C. These include Public Provident Fund (PPF), Life Insurance Premiums, National Savings Certificates (NSC), and Equity Linked Savings Schemes (ELSS).
Step 3: Focus on the specific option given in the question. In this case, we are looking for deductions related to Public Provident Fund (PPF) contributions.
Step 4: Confirm that contributions made to the Public Provident Fund (PPF) are indeed eligible for deduction under Section 80C.
Step 5: Conclude that the answer to the question is that PPF contributions are available for deduction under Section 80C.
