Which section of the Income Tax Act allows for deductions on investments in spec
Practice Questions
Q1
Which section of the Income Tax Act allows for deductions on investments in specified savings instruments?
Section 80C
Section 80D
Section 80E
Section 80G
Questions & Step-by-Step Solutions
Which section of the Income Tax Act allows for deductions on investments in specified savings instruments?
Step 1: Understand that the Income Tax Act is a law that governs how income tax is collected in India.
Step 2: Learn that certain sections of this act provide benefits to taxpayers.
Step 3: Identify that Section 80C is one of these sections.
Step 4: Know that Section 80C allows taxpayers to deduct a certain amount from their taxable income.
Step 5: Recognize that this deduction is specifically for investments made in specified savings instruments, like Public Provident Fund (PPF), National Savings Certificate (NSC), and others.
