Under Section 80C, which of the following investments qualifies for deduction?
Practice Questions
1 question
Q1
Under Section 80C, which of the following investments qualifies for deduction?
Public Provident Fund (PPF)
Savings Bank Account Interest
Fixed Deposits
Cash in Hand
Public Provident Fund (PPF) is eligible for deduction under Section 80C.
Questions & Step-by-step Solutions
1 item
Q
Q: Under Section 80C, which of the following investments qualifies for deduction?
Solution: Public Provident Fund (PPF) is eligible for deduction under Section 80C.
Steps: 4
Step 1: Understand what Section 80C is. It is a part of the Income Tax Act in India that allows taxpayers to claim deductions on certain investments.
Step 2: Identify the types of investments that qualify for deductions under Section 80C. These include options like Public Provident Fund (PPF), Life Insurance Premiums, National Savings Certificates (NSC), and Equity Linked Savings Schemes (ELSS).
Step 3: Check if Public Provident Fund (PPF) is mentioned as one of the qualifying investments. Yes, it is.
Step 4: Conclude that since PPF is eligible, it qualifies for deduction under Section 80C.
