Under Section 80C, which of the following investments qualifies for deduction?

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Question: Under Section 80C, which of the following investments qualifies for deduction?

Options:

Correct Answer: Public Provident Fund (PPF)

Solution:

Public Provident Fund (PPF) is eligible for deduction under Section 80C.

Under Section 80C, which of the following investments qualifies for deduction?

Under Section 80C, which of the following investments qualifies for deduction?

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.

Section 80C Deductions – This section of the Income Tax Act allows individuals to claim deductions on certain investments and expenses, including contributions to specified savings schemes.
Eligible Investments – Understanding which investments qualify for deductions under Section 80C, such as Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), National Savings Certificate (NSC), etc.