Question

for an individual (age 55 years ) if annual income is Rs 550000 and deduction under section 80c. is rs 150000 then amount of taxable income will be ​

Answer 1

Answer:

Section 80C replaced the existing Section 88 with more or less the same investment mix available in Section 88. The new section 80C has become effective w.e.f. 1st April, 2006. Even the section 80CCC on pension scheme contributions was merged with the above 80C. However, this new section has allowed a major change in the method of providing the tax benefit. Section 80C of the Income Tax Act allows certain investments and expenditure to be tax-exempt.

Answer 2

Answer:

• An employee can claim deduction under 80CCD (1) at a maximum of 10% of basic salary plus dearness allowance. For self employed , the limit for deduction is 20% of their income subject to Rs 1.5 lakh maximum limit of section 80C.